Natural Gas – Daily Analysis
In the weekly report, we outlined a scenario for Natural Gas for the next few days. So far, Natty has followed it very well.
In today’s report, we examine Natural Gas, analyze key technical signals and the evolving structure, and identify the critical levels that will determine where Natty heads next.
CANDLES
Today, Natural Gas confirmed the bullish move on the daily frame with an 11% gap after the contract switch. But that is not all. Natty also flipped the 2D–5D frames bullish, strongly expanding the bullish momentum.
Today’s move also had a major transformational impact on the monthly frames. The 2M candle is now shaping as a potential bullish Harami, a serious change in just one day. If the momentum holds for the next two days, the gas market may get a new direction.
ELLIOTT WAVES
Last Wave
I treat today’s high after the gap as a possible completion of wave i off the bottom. The pullback looks corrective so far, and the projected wave ii could take several days to fully develop.
A gap is always a risk, so there are several unknowns that impact probability. The wave needs to mature further to reduce the uncertainty.
SUMMARY:
Natural Gas technically confirmed a short-term bottom, with very good chances to extend the bullish odds into the mid- and long-term frames by month-end.
From an Elliott Wave perspective, NG possibly completed a classical commodity impulse i, with wave 5 longer than wave 3, after the Ending Diagonal. The next likely move is a consolidation/pullback for wave ii, followed by an even stronger wave iii.
All upside targets remain intact.
