Natural Gas made 14.12% in five trading sessions to reach its highest level since January 2019. The price fell 2.04% shortly after, but the uptrend continues.
Fundamental factors are influencing the price of the commodity. From a technical point of view, the pair should find a substantial pullback in the short term as the relative strength index is overbought at 74%. We have seen the RSI stay over 70% for a few sessions in the past and then come out of the overbought status.
The Bollinger bands are wide, and this will bring higher volatility to the pair; however, the price trades closer to the upper band, suggesting that it is relatively high. The pair should find a pullback soon, but the demand for the commodity is high, and this could keep the price increased for the medium term.
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