Natural gas price holds near $3.68 as breakout pressure builds in narrowing price wedge
Natural gas consolidates in a narrowing range, with key resistance near $3.75 in focus
Natural gas futures closed at $3.685 on June 5, slipping slightly after failing to sustain an early rally above the $3.70 mark. Despite recent attempts by bulls to reclaim momentum, price action remains trapped within a tightening consolidation zone.
Key highlights
- Natural gas price today closed at $3.685 after intraday rejection from the $3.75 resistance zone.
- Price remains range-bound between $3.60 and $3.75, with indicators showing fading bullish momentum.
- A breakout above $3.75 could open the door toward $3.90–$4.00, while $3.60 remains critical downside support.
The broader setup indicates a market in equilibrium, with pressure building at both ends of a converging wedge pattern that could spark volatility in the coming sessions.
Resistance holds as market struggles to reclaim momentum
On the 4-hour chart, natural gas remains capped beneath a descending trendline originating from early May highs. Repeated rejection around the $3.73–$3.75 zone underscores the strength of overhead supply. Meanwhile, support is holding near $3.60, with stronger demand zones emerging around $3.53. The broader daily setup shows a series of lower highs forming against a higher low base, creating a wedge pattern that reflects indecision.
Natural gas price dynamics (Source: TradingView)
Momentum indicators offer little directional clarity. The RSI across intraday timeframes floats near 45–50, while the MACD has turned mildly bearish on the 30-minute chart. Bollinger Bands have contracted, and price is hugging the upper band without breakout confirmation. This lack of volatility expansion signals that markets await a catalyst before committing to a new trend.
Traders await breakout as key Fib and cloud levels converge
The Ichimoku Cloud shows the asset trading within or just below the cloud, reinforcing a mild bearish stance unless a breakout occurs. A failure to break $3.75 may lead to a fallback toward $3.60 or even $3.53. On the weekly Fibonacci scale, price is currently squeezed between the 38.2% retracement at $3.74 and the 50% level at $3.39—highlighting the importance of $3.74 as a potential pivot.
Looking ahead to June 6, traders should monitor volume and candle closes around $3.75 to confirm directional intent. A close above this resistance would favor bullish continuation, while a rejection followed by a drop below $3.60 could trigger renewed selling pressure.
In previous reports, we noted that natural gas was compressing within a wedge while holding key structural supports near $3.53. That range remains critical, and bulls will need to prove conviction above $3.75 to initiate any sustained breakout.
