Multi year range in White dotted lines since 2014
Blue dotted lines indicating the distance of the drop from top to bottom which ocured in 2014
The thesis is weakly supported ,unsupported by fundamentals which are decided bearish
posited on the premise of short covering rally in grossly oversold conditions for starters and longer term
LNG exports going forward
Nat Gas will rebound here or the current bullish trend will be cancelled and the wave count will resume into a bearish impulse scenario
and recent bullishness relegated to an A B C D type correction wave status
If Natty can breach the trendline due to heavy summertime Heat related consumption as indicated by the bullish EIA report on July 18th ..
A long here on a suspected strong Inverse Head and shoulders pattern emerging
Prediction is that tp will hit Jan 5th or 6th into
a correction of .5 on that leg of the correction EW wave
here showing an explosive right shoulder to create a nive IHS macro
Primary shit is impulse reversal wave to bull instead of being a mere corrective wave
Likely set up with higher than average ac ussage in the mix coming up for next weeks real draw related upside ...
Then a sharp drop as the fall bear volume kicks in likely scenarios are...
Nat Gas has been in a consolidation zone of epic 6month length
It has recently been following an expanding swing or megaphonic pattern
There is a clear precedent for this type of behaviour
It will surge upwards to 3.3 area before a big drop to 2.36 as bullish oil brings on excess gas supply
I see that the Head and shoulders macro has failed to complete and that Nat Gas has experienced a prolonged consolidation period.
we are currently resting on buy levels and we have a clear trend line base at the same time