A durable run higher for natural gas futures could take longer as technical indicators suggest bullish strength butting against fundamental pressures.

June natural gas futures on the New York Mercantile Exchange (Nymex) slipped 4.9 cents Friday (May 10) to settle at $2.252/MMBtu. On Monday, the prompt-month contract renewed the upside, surging 12.9 cents to settle at $2.381. Concurrently, July futures gained 10.3 cents to $2.587.

June futures “have been trading in a nice little upward sloping channel since breaking out of its descending triangle pattern last week,” said NGI’s Pat Rau, director of Strategy and Research. The upper part of the 20-Day Bollinger Band failed to contain the high end of the trading range for seven consecutive sessions, Rau noted.

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