A Slow Turn in Natural Gas Fundamentals Continues to Confirm the Technicals

Today's less than expected build in natural gas inventory represents one more incrementally bullish factor within a market that is transitioning between bear and bull.

From a technical perspective, today's up-spike in reaction to the news has launched the price structure off of a retest of its Mar-Aug support zone, which also can be viewed as the breakout plateau of a multi-month base pattern, that combine to form a very powerful area of "demand" on any price weakness.

At this juncture, the United States Natural Gas (UNG) either could rocket to new highs above 22.42 on the way to 23.30/60 next, or, it might climb to 21.60-22.00 and stall.

If it stalls, that will alert us to the likelihood that the UNG remains within the clutches of a high-level range-bound trade between 22.00 and 20.50, for a while longer, prior to my expectation of the emergence of a new upleg.