Natural Gas Elliott Wave Analysis
Since shifting to the March 2024 contract, natural gas futures have surged over 29%, nearing full recovery from the previous sell-off. On a broader scale, this suggests the commodity may extend its bullish corrective sequence from February 2024.
Natural Gas: Daily Chart Analysis
On the daily chart, natural gas remains in a corrective phase that began in February 2024. This level marked the conclusion of a bearish impulse sequence initiated in August 2022, when the commodity traded at $10. Currently, the corrective sequence is shaping into a double zigzag pattern.
- Wave (W) concluded at its January 2025 peak, leading to a price drop that completed wave (X).
- Wave (Y) began in the final days of January and is projected to advance toward the $5.7-$6.8 range.
Thus, in the short term, an upside continuation remains the favored outlook. However, unless the wave (W) peak is surpassed, traders should remain cautious about the possibility of a lower wave (X) forming within the double zigzag structure.
Natural Gas: H4 Chart Analysis
On the H4 chart, natural gas prices are currently in wave A of (Y), forming an impulse wave pattern.
- Following wave A, a bullish reaction is expected from the wave B pullback.
- However, based on the current price action, wave A may still extend higher before wave B corrects the movement.
Traders should monitor these key levels as natural gas remains in a bullish corrective phase with potential upward momentum in the coming sessions.
Technical Analyst: Sanmi Adeagbo
Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here
See Previous: Cocoa Elliott Wave Technical Analysis
VALUE Offer - Buy 1 Month & Get 3 Months!Click here
Access 7 Analysts Over 200 Markets Covered. Chat Room With Support
