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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.

GAS

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.

Chart

Natural Gas Elliott Wave technical analysis [Video]

Author

Peter Mathers

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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