Natural Gas Elliott Wave technical analysis [Video]
|Natural Gas Elliott Wave analysis
Natural Gas broke upside this week and took the previous high of 11th June. The commodity has gained over 120% since the low of February 2024 and has so far recovered close to half of the massive sell-off that happened between August 2022 and February 2024.
Daily chart analysis
On the daily chart, the recovery from the 21 February low of 1.522 is correcting the entire 5-wave decline from 22 August, when the commodity traded for $10, to 21 February when it exchanged for barely $1.5. By Fibonacci projection, this recovery could extend to $3.9-5. The first leg of the correction, wave ((A)) finished with an impulse 5-wave structure at 3.16 on 11th June. The pullback that followed in wave ((B)) ended in a sideways triangle structure. Rally for wave ((C)) began at 2.51 and should extend higher while short-term buyers look for opportunities from pullbacks. Meanwhile, swing sellers can wait for the corrective cycle to finish before engaging.
H4 chart analysis
On the H4 chart, wave (1) of ((C)) is emerging and appears incomplete. Price has probably completed wave 3 of (1) and is in a pullback for wave 4 of (1) where fresh bids will push the commodity’s prices higher. The best opportunity will be to look for a corrective pullback in wave (2) and find opportunities to the upside.
Technical analyst: Sanmi Adeagbo.
Natural Gas Elliott Wave 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.