NEW YORK ( TheStreet) -- Natural gas is expected to trade sideways to higher during the third quarter. Prices may reach $5.206 and touch $6.082, if they sustain above $4.309 per MMBtu. However, any break below $3.810 may drive prices lower. The resistant levels are pegged at $5.206, $6.082 and $6.697, while support is seen at $4.309, $3.788 and $3.246.Demand for natural gas is expected to remain high from electricity utilities during the summer. More than 20% of electricity demand in the U.S. is met through burning natural gas. Industrial applications will likely play a prominent role in reviving the demand for natural gas, going forward. The Atlantic hurricane season could disrupt production in the Gulf of Mexico. The National Oceanic and Atmospheric Administration, NOAA, has forecast an "active to extremely active" hurricane season, assigning a 70% probability for hurricanes this season. Supply may be further reduced on the U.S. government's policy to ban deep-water drilling, post the oil spill crisis involving BP ( BP) in the Gulf of Mexico. Factors disrupting supply in the Gulf of Mexico will support higher prices during the quarter. However, excess production and cooler weather may limit the upside for prices. Technical analysis indicates a mildly bullish sentiment for natural gas during the quarter. Natural gas prices on the NYMEX witnessed a trend reversal in the second quarter, rallying from $3.810 to $5.196 levels to settle at the $4.737 levels, gaining 19%. Prices bounced back as a leading indicator stochastic (5, 3) was treading in the oversold zone. If the market sustains above the trend line support of $4.031, a positive momentum is foreseen during the third quarter. As per the Fibonacci principle, the market is witnessing resistance at $5.206 levels (23.6% retracement of 6.082-2.370). If prices breach this level and sustain there, they could head for the next level at $6.082. The momentum indicator, RSI (14) monthly, has ascended from 0.34 to 0.46, suggesting a mildly bullish sentiment for the quarter.