Natural gas futures (September 2022 delivery) have drifted higher again after their recent downside correction faltered. Even though the latest spike seems to have encountered resistance at the upper Bollinger band, the commodity continues to retain a bullish near-term picture.
The momentum indicators suggest that buyers have regained the upper hand. Specifically, the stochastic oscillator is climbing near the 80-overbought territory, while the RSI is flatlining comfortably above the 50-neutral threshold.
In the positive scenario, the price could rise to test its recent high of 8.980. Piercing through this region, the spotlight may turn to the 9,400 barrier. An upside violation of the latter could open the door for the 14-year high of 9.630.
On the flipside, should the positive momentum fade and the price reverses down, the 8.160 hurdle could act as the first line of defense. Dipping beneath that region, the bears could aim for the crucial 7,530 support before the attention shifts to the 7,000 psychological mark. Failing to stop there, 6,450 could prove to be a tough obstacle for the price to overcome.
Overall, natural gas futures appear to have the necessary momentum to push even higher. Nevertheless, a break below the 7.530 and the 50-day moving average might alter their short-term picture back to negative.