Natural Gas Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

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]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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