The natural gas futures market has been volatile following the announcement of weekly inventory data on Thursday.
Despite a weekly withdrawal of 217 Bcf, which was higher than expected, the bulls have not made significant gains due to neutral weather forecasts.
Technically, the 15-minute chart shows that the natgas futures have been unable to remain above the 9 DMA after reaching a high of $2.527.
The futures attempted to stay above the 200 DMA but were unsuccessful.
The rest of the moves on Friday will depend on the rig count, as the growing production is still a concern for those hoping for bullish sentiment.
The natgas futures appear ready to bounce, as the bulls have prevented a drop below $2.412 and have maintained an upward trend.
Based on current formations, the bulls are eyeing a reach of $2.658 by the end of the week or a gap-up opening above $2.631 in the first trading session of the next week, as weather conditions can change rapidly over the weekend.
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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 in the world.