Natural Gas Elliott Wave technical analysis [Video]
|Natural Gas Elliott Wave analysis
Since the shift to the March 2024 contract, Natural gas futures prices have gained over 29% and are close to completely recovering from the sell-off in the previous weeks. On a bigger scale, it appears the commodity will extend the bullish corrective sequence from February 2024.
Natural Gas: Daily chart analysis
On the daily chart, it’s clear the commodity is in a corrective phase that started in February 2024. That low marked the end of a bearish impulse sequence that started in August 2022 when the commodity exchanged for $10. Meanwhile, the corrective sequence from February 2024 is emerging into a double zigzag structure. Wave (W) finished at the peak of January 2025 from where the price dropped to finish wave (X). Wave (Y) started in the last days of January and could extend to the $5.7-$6.8 price zone. Thus, the upside is favored to continue in the short term. However, until the top of wave (W) is breached, traders should be cautious of a lower wave (X) in a double zigzag structure.
Natural Gas: Four-hour chart analysis
On the H4 chart, the price is currently in wave A of (Y) with an impulse wave pattern. Thus, after wave A, traders should expect a bullish reaction from the wave B pullback. However, with the current price action, it doesn’t appear that wave A has finished yet - may still extend higher before wave B corrects it.
Natural Gas Elliott Wave technical analysis [Video]
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.