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Natural Gas – Weekly Analysis

Is Natural Gas forming a bottom, or was Friday’s bounce merely consolidation? In this weekly review, we’ll read the latest candles, align confirmations across key frames, and map the highest-probability paths for the weeks ahead in this ever-volatile market.

CANDLES

I think Natural Gas’s reluctance to flip the daily trend bearish finally paid off. On Friday, Natty followed the classical playbook for a Harami/Inside reversal: a lower low, a recovery, and, by the close, a full Bullish Engulfing—as anticipated in Thursday’s daily update.

As a result, the weekly closure was neutral and now requires confirmation either way. The 10D frame closed on a very optimistic note: Friday’s move rendered the bearish Dark Cloud Cover incomplete, transforming it from a bearish reversal into a bullish continuation combo.

Short term: bullish
Mid term (weekly): neutral
Long term (monthly): bullish

ELLIOTT WAVES

Mid Term

As I discussed earlier, investors should be prepared for a 70–140% rally over the next few months/quarters. This hypothesis remains intact.

Last Wave

Now Natty’s task is to complete an impulse somewhere within the purple rectangle. In commodities, fifth waves often extend beyond third waves, making exact lengths hard to predict. My estimate for the potential rally is 20–40%, which would likely mark wave (i) of wave 3 on the mid-term chart.

SUMMARY:

Natural Gas closed September with several convincingly bullish signals and reinforced its long-term prospects with a constructive 15D close last week. These higher-timeframe odds kept the recent weakness contained, and Friday’s Bullish Engulfing likely ended the decline.

I view the commodity as bullish in the short and long term, starting a rally with a potential 20–40% gain.

Short term: bullish
Mid term: neutral
Long term: bullish

Happy Trading!