The 50-day MA will be a critical test for natural gas traders because it can be resistance and the trigger point for an acceleration to the upside.
The intermediate range is $3.622 to $2.592. If buyers can take out the 50-day MA with conviction then look for the surge to continue into the 50% level at $3.107.
The main range is $4.218 to $2.592. Its 50% level target is $3.405. It forms a potential resistance cluster with the 200-day MA at $3.458.
This rally is likely being fueled by a combination of mostly short-covering and aggressive buying. But without a major shift in the demand numbers, sellers are likely to pounce on this move as it nears critical resistance areas.
