Natural gas is still in correction mode as it retreats from the highs around $4.700. Applying the Fibonacci retracement tool shows where more buyers are waiting.

The 100 SMA lines up with the 50% level at $4.450 and the rising trend line connecting the latest lows. If this is enough to keep losses in check, natural gas could resume the climb to the swing high and beyond.

A larger correction could reach the 61.8% Fib at $4.400 while a shallow pullback could already find buyers at the 38.2% Fib at $4.518.

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

Stochastic already reached the oversold region to signal exhaustion among sellers, and the oscillator is pulling higher to reflect a return in bullish pressure. A bit of bullish divergence can be seen, as stochastic made lower lows while price had higher lows.

The latest inventory report from the Department of Energy showed a build of 20 Bcf, smaller than the expected increase of 25 Bcf and the earlier gain of 29 Bcf. This signals that demand remains supported, even as weather agencies are hinting at an end to the summer season.

Risk appetite also seems to be in support of more gains for higher-yielding assets like commodities. In his latest speech in Jackson Hole, Fed head Powell mentioned that they could taper by the end of the year, but this move would be a dovish one.

The upcoming NFP release would likely impact overall market sentiment and natural gas price movements, as another miss in hiring could confirm that US central bank stimulus is here to stay for much longer.