Natural gas might be in for another short-term pullback as it tests the resistance around $4.690. Applying the Fibonacci retracement tool shows where buyers might be waiting to hop in.

The 61.8% level lines up with the rising trend line around $4.400 and the 100 SMA dynamic inflection point. If this holds as support, natural gas could revisit the swing high or climb higher.

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 pressure.

A shallow correction could already find buyers at the 38.2% level at $4.500 or the 50% level at $4.445.

However, stochastic is just starting to turn lower from the overbought region to signal a return in selling pressure while buyers take a break. The oscillator has room to slide before reaching the oversold area, so the correction could keep going for much longer.

Similarly, RSI is just turning lower from the overbought zone to signal that sellers are returning and could stay in control for a bit longer.

Natural gas continues to stay supported as the prospect of weather disturbances disrupting production is keeping traders on the lookout for another draw in stockpiles.

“It also is becoming more apparent that much of the production in the Gulf of Mexico could be shut in for all or most of September due to power outages and severe damage at Port Fourchon,” according to analysts at EBW Analytics Group.

“While lost production is likely to be largely offset by losses in demand, the prospect of a prolonged production shut-down could have a major bullish impact on the gas market.”

The upcoming report from the Department of Energy is expected to show a build of 25 Bcf, slower than the earlier increase of 29 Bcf.