Natural gas can be unraveling a bigger EW ending diagonal down from the start of 2019. We see a completed leg (1), followed by a temporary correction in wave (2), and now a three-wave A-B-C drop within wave (3). The latest rally which we see from the lower EW ending diagonal line can be part of a three-wave correction within wave (4), which can look for resistance and a bearish turn near the 2.40/2.45 region.

On the 1h chart of natural gas, we also see a clear, five-legged recovery labeled as wave A, that can once complete, push the price into a temporary pullback as wave B.

Natural gas, daily

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Natural gas, 1h

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