Natural Gas - potential for a breakout towards the upside, up around 5% on the day

Potential for a breakout towards the upside, up around 5% on the day

A potential break higher is underway here on the daily chart for Natural Gas. Currently trading at around $3.089 a tonne, the commodity seems to have recouped the momentum and now the price has approached the breakout resistance zone once again ($3.135). A break above this level could pave the way towards the October highs of $34-$36. However, yet another clear rejection may result in a more significant pullback going into the third quarter of the year. The initial support is the lower end of the channel, reading between $2.900-$2.929. A dip below this area may see an extension towards the more important support of $25.31. Nonetheless, the technical indicators are looking rather positive. The MACD has just turned positive and the RSI is on the rise as it reads 68.