Natgas Natural Gas Technical Analysis Today - Elliott Wave
Why It Matters
A breach of the April 24 swing low would invalidate the bullish Elliott‑wave case, prompting traders to reassess risk and potentially shift to short positions.
Key Takeaways
- •Bounce since May 7 may represent a corrective B wave.
- •Potential wider flat correction could retest $2.56‑$2.72 support.
- •Swing low of April 24 at $2.49 is key invalidation point.
- •No impulsive five‑wave advance observed, raising bearish risk.
- •Bullish scenario requires holding above April 24 swing low.
Summary
The video provides an Elliott‑wave technical read on natural‑gas prices, focusing on the recent upward bounce that began on May 7. The analyst argues that the move may be a corrective B wave rather than the start of a new bullish impulse.
Key data points include a potential wider flat correction that could retest the $2.56‑$2.72 support zone and the critical swing low from April 24 at roughly $2.49, which serves as the primary invalidation level for any bullish scenario. The lack of an impulsive five‑wave advance further fuels concern that the rally is not yet sustainable.
The presenter emphasizes, “If we fall back below the April 24 swing low, I have nothing bullish left,” underscoring the importance of that price threshold. He also notes that while higher prices are being tracked, they hinge on maintaining above the $2.49 level.
Implications are clear: traders should treat the recent bounce as tentative, monitor the $2.56‑$2.72 support range, and be prepared for a possible reversal if the April 24 low is breached, which would invalidate the bullish outlook.
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