Wednesday, December 19, 2012
Elliott wave analysis of Natural Gas
It has been quite a while since I have last written about Natural Gas. Please see my last post here:
I have change my count to a double zig-zag, because of the overlapping structure. Even though I'm still looking for a move higher towards the 4.70 - 5.00 area once the ongoing wave B-correction is finished. This B-wave might already have finished at 3.27, but a break above 3.45 and more importantly 3.67 is need to confirm, that wave C higher towards 4.70 is developing.
The above scenario is my preferred count at this point, but there is an even more bullish alternative. This alternate count suggest that the entire structure from 1.99 to 4.00 is a leading diagonal as wave A or 1 and the ongoing correction wave B or 2, which will leave us with wave C or 3 once wave B is over. If we have seen a leading diagonal, then we will likely see a deeper correction towards at least 2.96 (50% retracement target) or even 2.71 (61.8% retracement target) before the next move higher.