Thursday, August 6, 2009

Nat Gas Wave Count

The last couple days have seen Nat Gas spike up and then chop sideways just under the high before failing. That type of flag USUALLY breaks in the direction of the preceding trend, and is common in the 4th wave position prior to a final 5th wave high. However this has been a very choppy move up off the lows from 3.22 so a failure of the "e" wave to make a new high is not that surprising really. Pls see prev. Nat Gas posts. In any event if the move down today was merely part of a correction to a presumed 3 wave ( I have it labeled "c" ) then it should never have retraced more than 50%, let alone .618 . So while there can always be another series of ABC's , that structure is done. Having had an ABC up from the 3.22 spot mo. level, that can now be expected to be tested. Under that 3.155 as the current low will also likely be tested.

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