Natural Gas – Daily Analysis
Natural Gas recorded a very important signal today, and we need to understand its implications. In this Natural Gas technical analysis, we assess the Henry Hub futures setup—candlestick structure, key support and resistance levels, momentum, and Elliott Wave context—to outline the highest-probability paths from here and define the confirmation and failure levels.
CANDLES
Today, Natural Gas strengthened its bullish momentum on the daily frame by averting the 8/20 EMA bearish cross. It also formed a strong reversal combo on the 2-day frame and failed to confirm a bearish combo on the 5-day frame. Overall, the odds lean predominantly bullish.
Short term: bullish
Mid term: bearish, unconfirmed; potential for rejection
Long term: bullish
ELLIOTT WAVES
Road Map
While the candle signals were important, the main message came from the Elliott Wave structure. Today’s move clearly invalidated the prospect of an impulsive move down (the red path above). From here, the discussion shifts to either an impulse in purple or a potentially larger correction in blue. A new higher high would likely invalidate the blue count and open the path toward the targets outlined in the monthly review on the long-term charts.
Last Wave
A move above $4.881 will likely open the path to the wave (iii) target in the rectangle.
SUMMARY:
Natural Gas is bullish in the short term, with an increased likelihood of rejecting last week’s bearish weekly closure. From the wave-structure perspective, Natty failed to form a meaningful impulsive move downward and is now positioned for new higher highs, though the precise path is still developing.
Short term: bullish
Mid term: bearish, unconfirmed; potential for rejection
Long term: bullish
Happy Trading!
