Natural Gas Faces Major Supply Wall at Confluence Cluster
Natural Gas Futures (NYMEX: NG1!) has been displaying an aggressive recovery structure on its Daily chart, but this is tempered by a significant technical challenge.
The asset's medium-term Fibonacci projections suggest higher targets, but it is fast approaching a major institutional supply wall that demands caution.
A confluence cluster is looming ahead at 3.422-3.446, which includes the key macro supply line at 3.422, the 0.618 Fibonacci retracement level at 3.424, and the long-term 200 EMA baseline at 3.446.
The recent price action has shown that entering this overhead supply block will not be easy, with a prominent upper rejection wick followed by immediate downside closes into early June confirming institutional sellers' defense of the approaches to the 3.42-3.45 cluster.