Natural gas is trending higher on its hourly time frame, moving inside a rising channel and finding support at the mid-channel area of interest. Price might be setting its sights higher on the upside targets marked by the Fibonacci extension tool.

The 50% level seems to have held as resistance, so natural gas might dip back to nearby support levels. The middle of the channel is around $6.100, then the channel support is at $5.800-5.900.

A continuation of the climb could take natural gas up to the 61.8% extension near the top of the channel at $6.300. The 76.4% level is at $6.410, then the full extension is at $6.577 past the channel resistance.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to gain traction from here. Price is moving above both indicators, so these could keep holding as dynamic support on dips.

Stochastic is heading down to show that selling pressure is in play, and the oscillator has plenty of room to slide before indicating oversold conditions. RSI is on middle ground to reflect consolidation but appears to be turning higher to signal a pickup in bullish momentum.

Natural gas could take cues from the inventory report to be released by the Department of Energy, as another smaller build in stockpiles would signal that demand is starting to pick up.

Temperatures have been dropping in several parts of the world, leading to stronger purchases of heating commodities. Even colder winter conditions might spark another energy crunch, especially as the conflict between Russia and Ukraine has kept global supply levels limited.

Risk appetite spurred by the release of the FOMC minutes later this week might also impact commodity prices overall.