Natural gas is bouncing off support at the rising trend line on its 4-hour chart and looks ready to test the nearby resistance levels marked by the Fib extension tool.

The swing high lines up with the 38.2% Fib extension level around $2.946. Stronger bullish pressure could take natural gas up to the 50% extension at $2.976 or the 61.8% level near the $3.000 major psychological mark. The 76.4% extension is at $3.044, then the full extension is at $3.104.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support levels are more likely to hold than to break. The gap between the indicators is widening to reflect strengthening bullish momentum.

Stochastic is pointing up to show that buying pressure is in play, and the oscillator has a bit of room to climb before reflecting overbought conditions or exhaustion among bulls.

Natural gas appears to be starting to draw support from warmer temperatures, as this could mean a rise in demand for cooling commodities. The latest EIA inventory report showed a smaller than expected build in stockpiles of 60 Bcf versus the estimated 68 Bcf increase, although this is larger than the earlier 15 Bcf gain.

Another build in stockpiles could signal that demand is weaker lately or that supply remains elevated. Temperatures rose across most US states over the past week, which likely lifted purchases of the commodity. Forecasts of warmer weather could also bring gains for natural gas prices.

Apart from that, overall market sentiment would likely push commodity prices around once more, and the upcoming top-tier reports from the US could determine if investors could stay optimistic or not. Recall that the latest NFP release turned out much weaker than expected, so it’s likely that spending and price pressures took hits as well.