Tuesday, February 2, 2010

Natural Gas Updated Elliott Wave

click to enlarge
From Yest. morn., " selling bounces is the theme across all markets at this point and a 50% at 5.43 or .618 at 5.52 would be real gifts going into the shoulder. "  Still true and while potential exists for higher prints, risk of a move lower from here , even as a -b- wave continuation of the corrective structure is relatively high, AND  a complete x wave would indicate new lows in the near term.
Note the abc structure in the first move up from the low 5.06 print, followed by a 5.09 print. That does not look like a 1st wave up. In a push it could be explained as an expanding triangle but that would be uncommon in a 2 wave position.
In the larger context a 4 month rally is generally not corrected in 3 weeks.

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