Natural Gas hit $2.80 and dropped immediately. Will price fall or gain more? The 30 July Natural Gas Elliott wave analysis has the following clues.
Natural Gas rallied from 2.75 last week to 2.80 this week. Price dropped fast to 2.77 afterwards but quickly picked itself. Price is currently below 2.8. In the last update, we identified a bearish impulse wave with the 4th wave under construction. We expected the 4th wave to get up to 2.80 which is the 38.2% Fib-retracement of the 3th wave of the same degree. Price is now currently slightly below 2.80. Will the rally be rejected at at this price level? The chart below was used in the last update.
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.
Price did just as expected – advanced to 2.80. What next?
30 July Natural Gas Elliott wave analysis: what next?
The chart above shows price struggling below 2.80. The reversal zone is 2.80-2.84. If the expected bearish move would happen, we would see price contained below this zone and break below 2.75. A break below 2.75 would validate this forecast and most likely lead price to the 2.58 bearish target. A break above 2.84 would invalidate this forecast. Stay tuned for the next update.
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