Natural Gas Elliott Wave analysis
The late October recovery continues as the commodity has stayed within a sideways price structure since April 2023. Meanwhile, in the meantime, it appears prices will attempt to break the October and June highs of 2024 to retest the January 2024 and October 2023 highs of the range.
From the long-term price action, Natural gas completed the bearish impulse wave sequence from August 2022, when it exchanged for $10, in February 2024 at barely $1.5. That was a whooping crash! However, from the perspective of the Elliottwave theory, a 3-wave correction follows a 5-wave trend. It appears the price is correcting the bearish impulse from August 2022. The correction could advance as much as $4.79-5.8.
On the daily chart, the correction starts from 1.522 and is emerging into a zigzag structure of the primary degree. Wave ((A)) finished with an impulse structure at 3.16 in June 2024. Since June, the price fell and went sideways suggesting a triangle structure for wave ((B)). Thus, when wave ((B)) ends, wave ((C)) should advance to $4 or higher.
On the H4 chart, it appears wave (E) of ((B)) is incomplete. Thus, the pullback from late October could extend to 2.47 -2.35 to complete wave (E) and then price surges to continue the bullish correction that started on February.
Technical analyst: Sanmi Adeagbo.
Natural Gas Elliott Wave analysis [Video]
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