Strong Bullish Momentum – Price Near Key Breakout Zone
Natural Gas has continued its upward rally, supported by strong momentum and Elliott Wave structure. Price action suggests that we are currently in Wave 3, which typically produces the strongest impulsive move in the cycle.
The recent breakout above major resistance & rising demand signals sustained strength, while RSI remains bullish but slightly overbought—implying short-term pullback possibilities before further upside.
Previous Analyses:
📍 Current Market Position
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Trading around $5.13 with bullish continuation structure
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Clean breakout above descending trendline resistance
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Holding above strong support cluster of $4.70 – $4.50
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RSI near 72, showing aggressive buying but close to exhaustion zone
📈 Elliott Wave Projection
Wave count suggests:
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Wave 1 completed at $3.70 – $4.00
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Wave 2 corrective low near $2.75
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Wave 3 in progress, targeting upside expansion
🎯 Upside Target Zones
| Target | Comment |
|---|---|
| $5.60 – $6.00 | Local resistance zone |
| $6.16 – $6.64 | Wave 3 extension target |
| $7.20 – $7.60 – $8.30 | Major supply zone / Wave 3 top possible |
| $10.00 – $11.55 | Final Wave 5 long-term target region |
🟦 Key Buy Opportunity Zones (Pullback levels)
| Support area | Comment |
|---|---|
| $4.70 – $4.50 | First dip buying zone |
| $4.25 – $4.10 | Strong demand base |
| $3.00 – $2.75 | Wave 2 reference zone / deep correction low |
Only a breakdown below $2.75 would invalidate long-term bullish structure.
📊 RSI View
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RSI currently at 71.88 (overbought region)
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Possible small correction / sideways consolidation expected
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Re-entry signals likely on RSI retracement to 45–55 zone
🎯 Trading Strategy (Personal Bias)
Bullish
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Buy dips toward $4.70 / $4.50
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Add aggressively if price holds $4.10 support
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Target $6.00 → $6.64 → $7.60 → $8.30
Bearish invalidation
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Close below $2.75
🧠 Conclusion
Natural Gas remains structurally bullish with Wave 3 expansion underway. Short-term corrections should provide strong opportunities to accumulate long positions for larger targets ahead.
💬 What is your view?
Do you expect Wave 3 to extend sharply?
Comment “Extended 3” if bullish or “Correction first” if expecting pullback.
⚠️ Disclaimer
Educational Elliott Wave analysis only — Not investment advice. Manage risk appropriately.
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