On analysis of the live moves of natural gas futures, I find that despite a growth in stockpiles during the last weeks, industrial demand could push the price upward. Natural gas futures have finally formed a strong base at 200 DMA before the next breakout move. They had already witnessed the formation of a bullish handle in the 1 hour chart which confirms a breakout move during this week.
I find that a sustainable move of natural gas futures above $2.777 will be the first step that the bulls are likely to take before heading towards their next target at $2.889 and then at $3.059. While in case of a downward move, the level of $2.560 will provide an opportunity to go long. There is no doubt that the natural gas futures could continue to witness high volatility during this week, but the overall trend could remain bullish till the completion of a "Saucer" during the upcoming weeks.
Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk; as Natural Gas is one of the most liquid commodities of the world.