Natural Gas Elliott Wave Analysis 

Natural Gas completed the bullish correction that started at the low of February 2024. The recent bearish response suggests that the commodity could be about to resume the larger bearish trend that lasted between August 2022 and February 2024.

Daily Chart Analysis

The Elliott wave theory is built on 5-3 price sequences. This means a 5-wave trend should be followed by a 3-wave correction. After the end of the correction, the price should resume in the direction of the trend—in another 5-wave sequence. That’s the case with Natural Gas. 

The commodity completed a 5-wave decline - wave ((A)), between August 2022 and February 2024 and then followed by a 3-wave correction identified as wave ((B)). With wave ((B)) ending at the peak of January 2025, wave ((C)) should have started. Thus, we can start counting the sub-waves of ((C)) to prices below the February 2024 low. Wave ((C)) is expected to emerge as a 5-wave sequence.

H4 Chart Analysis

On the H4 chart, the sub-waves of ((C)) have started. From the peak of January 2024, a bearish impulse wave is emerging - expected to be for wave 1 of (1) of ((C)). Within wave 1, the price is in wave (iii) of ((iii)). Thus, wave 1 could still extend lower before a bullish correction for wave 2 ensues. Wave 2 bounce could provide an opportunity for sellers to find good entries.

Technical Analyst : Sanmi Adeagbo

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