25 July Natural Gas Elliott wave analysis

Natural Gas could rally up to $2.8 before dropping further. The following 25 July Natural Gas Elliott wave analysis looks at Natural Gas based on Elliott wave theory.

It's been reported that the World's major Oil giants are now stepping up their Natural Gas game. Energy giants are now pumping more of this Hydrocarbon gas like never before with better technology and lower costs spurring rising in profits. According to Reuters,

BP Plc (BP.L), Exxon Mobil Corp (XOM.N), Royal Dutch Shell Plc (RDSa.L), Total SA (TOTF.PA) and Chevron Corp (CVX.N) have collectively increased natural gas output 15 percent in the past decade thanks to better technology and lower costs, according to data from Wood Mackenzie energy consultancy.

Despite this report, Natural gas has gained just 7 points from 2.669 to 2.75 since 19th July when it started to make a way up. It will be expected that if this giants continue to invest more in this Gas, price would surge in the coming days. However, from Elliott wave theory perspective, the surge would happen but will be limited before it plunges further. The activities of the Oil giants which is perceived to be causing current rallies may just be a corrective 4th wave of the crash that started last month.

25 July Natural Gas Elliott wave analysis

From mid-June, Natural gas has dropped from 3.036 to 2.669 (a huge 12% decline) in what looks like an emerging impulse wave. The current rally could be limited at 2.80 (38.2% retracement of wave 3). Price would be expected to plunge further to 2.6-2.65 before the real big shift upside happens. While the Oil giants are investing big, it may not be the best time for speculators to buy. The best time, according to this forecast, is at the end of the 5th wave.

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