Natural Gas – Weekly Analysis
Those who followed our October 17 call should be sitting on ~25% gains. In today’s Natural Gas analysis, we decode the latest candlestick structure, review the Elliott Wave counts, and track momentum to identify the highest-probability paths from here. Whether you trade Henry Hub futures, UNG, or spot, this report outlines what the current setup implies for the coming weeks—and where the confirmation and failure lines sit.
CANDLES
Natural Gas extended its rally this week and closed with a bullish continuation candle. As noted, Natty also recorded a 50/200-DMA golden cross, and all trends remain bullish.
On the daily frame, an incomplete Dark Cloud Cover likely functions as a bullish continuation. The 2D printed a Bearish Engulfing on weak technicals and needs confirmation.
Overall, the commodity is neutral short term, while mid/long-term odds remain bullish.
Short term: neutral, leaning bullish
Mid term (weekly): bullish
Long term (monthly): bullish
Classical Pattern – Inverse Head & Shoulders
After September’s Bullish Engulfing, Natty rallied sharply in October and is now probing the IHS neckline. A green November close would likely complete the pattern.
ELLIOTT WAVES
Mid Term
As I discussed in September, investors should be prepared for a 70–140% rally over the next few months/quarters. This hypothesis remains intact.
Last Wave
At a micro level, Natural Gas is likely completing wave 3 of v and could start a horizontal consolidation for wave 4.
SUMMARY:
Following a strong bullish close in September, Natural Gas extended its advance in October and continues to record meaningful technical and candlestick signals that strengthen the bullish odds. Natty remains in firm uptrends across all frames through the quarterly. While a rangebound phase or a minor pullback is possible in the short term, the mid- to long-term outlook remains firmly bullish until reversed.
Short term: neutral, leaning bullish
Mid term: bullish
Long term: bullish
Happy Trading!
