Photo by American Public Power Association on Unsplash 
 

Natural gas prices have recently shown a strong rebound after completing a three-wave ABC corrective decline on the daily chart. From an Elliott Wave perspective, this pullback can be classified as a higher-degree wave IV correction, which appears to be part of a broader weekly leading diagonal formation. Such structures often precede the final impulsive advance, signaling that the corrective phase may now be complete.
 

NATGAS Weekly Chart
 

With this rebound in place, price action is likely unfolding into wave V of the larger pattern. Importantly, this wave V can develop as a new lower-degree five-wave bullish cycle, implying that the current move higher may represent only the early stages of a broader upside sequence. As long as price holds above key support levels, further gains can be expected over the coming days and weeks.
 

NATGAS Daily Chart
 

From a tactical standpoint, traders should be aware that early impulsive advances are often interrupted by a wave 2 pullback, which serves to relieve short-term overbought conditions. Such a retracement would be considered healthy and may offer opportunities for positioning ahead of a potential wave 3 advance, which is typically the strongest and most extended phase of a bullish cycle.

Beyond the technical picture, natural gas is also finding support from fundamental factors. Seasonal demand expectations, tighter supply dynamics, and shifts in weather forecasts toward cooler or more volatile conditions tend to increase consumption expectations, particularly for heating and power generation. Additionally, production discipline and fluctuations in storage levels can further contribute to price strength, reinforcing the bullish technical setup.

In summary, natural gas appears to have completed a corrective phase and is now transitioning into a new bullish cycle. While short-term pullbacks remain possible, the broader technical structure favors higher prices, supported by an improving fundamental backdrop.

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