Oct. 5 (Bloomberg) -- Natural gas is poised to rally toward $5 per million British thermal units based on a jump in the 10- day moving average in the past week, according to a technical analysis by Mike Fitzpatrick, vice president of energy with MF Global in New York City. “The chart gives a very bullish look with the 10-day moving average now over the 40- and 200-day, a very strong signal,” he said in a note to clients on Oct. 2. “There is also an active buy signal, which kicked in two weeks ago.” Natural gas futures declined 4.7 percent last week on the New York Mercantile Exchange after an Energy Department report showed that U.S. stockpiles rose to a record 3.589 trillion cubic feet. Prices have dropped 37 percent in the past year as the recession cut demand and supplies expanded. Gas will encounter resistance at $4.975 per million Btu and “major support is coming up at the gap closure point of $4.022,” Fitzpatrick said. Prices below the pivot point of $4.58 “show a glaring short-term weakness, considering the overall bullish look of the chart,” he said. Gas for November delivery rose 25.2 cents, or 5.6 percent, to settle at $4.718 per million Btu on Oct. 2 on the New York exchange. Moving averages are an indicator watched by some technical traders who monitor patterns on daily charts for clues to price direction and may sell or buy based on those signals.

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