Natural Gas Futures (NYMEX:NG1!) are showing a strong recovery on the daily chart, with bullish momentum building after successfully defending a key demand floor at **2.476** in late April. The asset has established a sequence of higher lows, indicating a potential upward trend. However, traders are advised to exercise caution as the asset approaches a significant institutional supply wall.
The technical framework highlights Fibonacci projections pointing toward higher targets, but the convergence of these targets with a major 200 EMA and other supply levels suggests a potential reversal or consolidation. The multi-layered resistance could lead to a technical pullback or a period of sideways movement before the next leg up.
Traders are urged to monitor the interaction between the bullish structure and the supply wall closely. The aggressive recovery structure may continue, but the institutional supply wall demands strict technical caution to avoid potential downside risks.