Hello traders and investors!
Today we will talk about natural gas, its price action from technical point of view and wave structure from Elliott Wave perspective.
As you can see, natural gas is in the downtrend and we are tracking a big weekly A-B-C decline, where wave C is in progress since 2008 and it looks like a big ending diagonal (wedge) pattern.
Ending diagonals a.k.a wedge patterns consist of five waves, labeled 1-2-3-4-5, where each wave subdivides into three legs. Waves 1 and 4 overlaps in price, while wave 3 can not be the shortest amongst waves 1, 3, and 5.
Well, current recovery on natural gas looks slow, choppy and overlapped, so we believe that it belongs to a wave (4), which can stop here in the 4.x area and at the strong weekly upper ending diagonal line.
So, in case if natural gas starts sharply and impulsively falling, then be aware of a bearish continuation within the final wave (5) that can send the price back to lows and 1.0 area before it finds the bottom.
All the best and have a nice weekend!
If you like what we do, then please like and share our idea!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Today we will talk about natural gas, its price action from technical point of view and wave structure from Elliott Wave perspective.
As you can see, natural gas is in the downtrend and we are tracking a big weekly A-B-C decline, where wave C is in progress since 2008 and it looks like a big ending diagonal (wedge) pattern.
Ending diagonals a.k.a wedge patterns consist of five waves, labeled 1-2-3-4-5, where each wave subdivides into three legs. Waves 1 and 4 overlaps in price, while wave 3 can not be the shortest amongst waves 1, 3, and 5.
Well, current recovery on natural gas looks slow, choppy and overlapped, so we believe that it belongs to a wave (4), which can stop here in the 4.x area and at the strong weekly upper ending diagonal line.
So, in case if natural gas starts sharply and impulsively falling, then be aware of a bearish continuation within the final wave (5) that can send the price back to lows and 1.0 area before it finds the bottom.
All the best and have a nice weekend!
If you like what we do, then please like and share our idea!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
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