Natural gas has formed a triple bottom pattern, indicating that a reversal from the selloff may be underway. Technical indicators are giving mixed signals on where price might go next.

Price is starting to climb above the neckline of the formation around $2.600, and a move higher could set off a climb that’s the same height as the reversal pattern. However, price is closing in on the 100 SMA dynamic inflection point that could keep gains in check.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is likely to resume. The gap between the indicators is widening to reflect strengthening selling pressure as well.

Stochastic has reached the overbought conditions to signal exhaustion among buyers. Turning lower could mean that bearish pressure is about to pick up, possibly leading to a dip back to the bottoms around $2.500.

RSI has a bit more room to climb, so buyers could have a bit more energy left. A break past the 100 SMA could set off a climb to the 200 SMA at $2.800 next.

Natural gas storage previously saw a drop of 36 Bcf and might indicate another reduction in stockpiles for the latest reporting week. After all, temperatures still got cooler in the past few days, likely driving up demand for heating commodities.

A surprise build, however, could put downside pressure on natural gas prices as it might signal weaker purchases. Another large draw could provide more upside momentum.

The blockage in the Suez Canal also likely spurred some support for commodities and other raw materials as supply shortages and higher prices are expected. However, the blockage has recently been cleared, possibly resulting in profit-taking for natural gas price gains.