Natural Gas – Daily Analysis
In this Natural Gas update, we bring together our core technical strategies—support zones, wave analysis, and multi-timeframe indicators—to assess where this high-volatility market might head next. Whether a breakdown is unfolding or a rebound is brewing, our time-tested approach helps clarify the signals and outline the scenarios that matter. This isn’t just market watching—it’s informed forecasting.
CANDLES
Today, NG formed a Thrusting Line combo on the daily chart—a classic bearish continuation pattern. The technical landscape continues to weaken, offering little sign of support. No surprises came from the monthly frame either: it closed bearish, with a clear break below both the 200- and 100-month moving averages.
Key mid-term frames remain firmly bearish. And while NG is still holding above the critical support level, the odds now favor a breakdown and a move toward lower lows. For now, NG remains bearish until proven otherwise.
ELLIOTT WAVES
Mid Term
If NG2 breaks below $3.007, the red count shown above will likely take over as the primary scenario. The chart below provides a zoomed-in view of the structure for closer examination.
The previous purple count remains on the back burner, with very low odds at this stage. Today’s move up appears to be corrective in nature. The gap from July 28 adds significant complexity to the Elliott Wave interpretation, so the focus will shift more heavily toward candlestick patterns and technical indicators for guidance.
SUMMARY:
Natural Gas closed July with a bearish candle and formed multiple bearish combinations on the mid-term frames throughout the month—raising the odds for a continued decline.
It remains at a critical inflection point near the $3.007 level ($NG2). A break below the April low would invalidate the potential purple impulsive count and likely open the door to a much deeper downside move.
If Natty fails to reverse course in August, the prospect of a multi-month—or even multi-quarter—bear market could become a reality.
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Happy Trading!
