I've been hit by Natural Gas' wild fluctuations in the past, which kind of developed my obsession towards this commodity. Using Renko charts and plotting Elliott Waves, I believe that the corrective wave 4 seems to have been completed near 38.2% of Wave 3, circa 4.365. The target for wave 5 comes in at 6.05
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| Natural Gas - Renko Charts, Elliott Wave Analysis |
Looking at the same using my Trend following method, notice firstly the 3 EMA's lining up for a cross over. The recent drop seems to be supported by 150 EMA. Also with the Stochastics technically crossing above 20 level and MACD moving above the 0-line its a buy.
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| Natural Gas - Candlestick Charts, Trend Following Method |
Additional confirmation would be see at least 2 bullish bricks on the Renko which could validate this trade idea. The previous support level at 4.7 could act in as resistance and there could be some bounce or even a retest to 4.365, which is a risk that should be kept in mind.
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