Natural Gas has bounced from $1.574 since 03.10.2016 and developed into a five-wave sequence terminating at $3.846 exactly where fib price measurements were converging, highlighting the end of the impulsive wave.
Measuring the internal waves of this sequence, it turns out that its fifth wave is extended. That can be confirmed even from the ensuing (a) – (b) – (c) correction making a sharp founding support at the level of the low of wave two of the extension, which is common after 5th wave extensions, indicating dramatic reversal ahead.
However, the correction was not over, again price has since developed into a corrective structure where minor degree (x) wave is possibly developing into a Regular Flat pattern. The last c. wave to complete the pattern has started unfolding and it must also subdivide into a five-wave pattern, which is actually possible. In this case, it would commonly end at minute wave’s b origin ($3.38).
After this upside target has been tested, await a reversal signature to confirm the resumption of the larger downtrend with a , to complete the double pattern with minimum $2.378 as a downside target.
We will be waiting to witness a five-wave price event on an inter-hourly chart to the downside from that high ($3.38) to validate that the downtrend is in place.
Thanks for your attention
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