Natural gas is resuming its climb after finding support at the area of interest around $4.200. Price could be setting its sights on the upside targets marked by the Fibonacci extension tool.

The 38.2% level is at $4.502, which lines up with the swing high. Stronger bullish pressure could take it to the 50% level at $4.596 or the 61.8% level at $4.690. The 76.4% level is at $4.806 and the full extension is near the $5.000 major psychological mark.

The 100 SMA is still above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb could carry on. However, the gap between the indicators has narrowed to reflect weaker bullish pressure and a potential crossover.

Even so, natural gas is trading above both indicators, so these could continue to hold as dynamic support on dips.

Stochastic is heading higher to show that bullish pressure is present, and the oscillator has room to climb before indicating overbought conditions. RSI, on the other hand, appears to be turning lower from the overbought area to signal a pickup in bearish pressure.

Natural gas found support from the prospect of supply disruptions owing to Hurricane Ida hitting the Gulf Coast. This could mean another round of large inventory draws, reflecting subdued supply while demand remains elevated.

Keep in mind that weather agencies predicted a bout of warm weather in the coming weeks, possibly lifting purchases of cooling commodities like natural gas in the near-term.

However, the summer months might soon draw to a close, which might mean profit-taking for natural gas traders until the winter season rolls in.

Apart from that, major swings in market sentiment might push commodity prices around this week. The upcoming NFP release could impact Fed policy expectations, which in turn affect traders’ appetite for riskier assets.