Natural Gas Technical Analysis and Near-Term Outlook
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Natural gas stalled just above the $4.17 larger than (1.618) target of the sub-wave up from $3.875 and the 62 percent retracement of the decline from $4.347. The subsequent move down settled below the 62 percent retracement of the rise from $3.875. This implies that the corrective move up from $3.875 is complete.
The outlook for tomorrow is bearish and a test of the $3.90 smaller than (0.618) target of the waves down from $4.314 and $4.175 is expected. Settling below $3.90 will call for a test of the $3.85 intermediate (1.382) target of the wave down from $4.347. This is also the 38 percent retracement of the rise from $3.019. Settling below $3.85 will clear the way for $3.81 and likely $3.74 in the coming days.
Should the move down stall again and test resistance look for $4.03 to hold. Overcoming this would call for $4.09 and possibly $4.13. Settling above $4.13, the smaller than target of the wave up from $3.875, will put natural gas back in a position to challenge and possibly close above the crucial $4.17 level. This is because the $4.13 objective connects to $4.24 as the equal (1.00) to target.
