Natural Gas – Daily Analysis
A tiny $0.002 technical failure, followed by a 10% rally. Isn’t Natural Gas amazing when it behaves?
Now the key question is what comes next.
In today’s report, we examine Natty through its key technical signals and evolving structure, identify the critical levels now in focus, and assess the most probable path for the next major move.
CANDLES
Today, Natty built on the initial move and increased the bullish odds across several short-term frames. The 6.6% advance was significant enough that we are now watching for a strong bullish continuation candle on the weekly frame and a potential bullish reversal signal on the monthly frame, both due tomorrow.
Overall, the short-term outlook is bullish. The mid- and long-term outlooks are leaning bullish as well, although I would like to see the final print tomorrow before making a firmer assessment.
ELLIOTT WAVES
Last Wave
The current wave is likely either wave iii of (iii) in green, or the beginning of wave (iii) in red.
SUMMARY:
Natural Gas has shifted back into a constructive bullish posture after the $0.002 failed breakdown triggered a sharp rally. The short-term outlook is now bullish, while the mid- and long-term frames are leaning bullish, pending tomorrow’s final prints.
Tomorrow’s weekly and monthly closes could be very important. If Natty holds the recent momentum, the weekly frame may close with a strong bullish continuation candle, while the monthly could produce a bullish reversal signal. That would materially improve the broader setup and support the idea that the current wave is either wave iii of (iii) in green or the beginning of wave (iii) in red.
In short, Natty has moved from uncertainty back to opportunity. A strong close tomorrow could turn the recent rally from a sharp bounce into a much more meaningful bullish confirmation.
