Thursday, February 10, 2011

Natural Gas Elliott Update.

Turns out it's an X wave down of larger degree (which we kinda knew). Here's an updated Elliott count.  
Active Mo.
click to enlarge
The three series of abc's are almost all equal so it gets it's own structure label W. That makes this move down  an X wave of greater degree. Within that structure c=a @ 3.86 and the .618 retrace of W kicks in at the 3.90 level, the measured target previously discussed. As usual the reaction to the stats will probably clear things up and provide a little opp.

I do not believe that this choppy move up, beginning last Oct is done yet. It is likely that we get another series of abc's up ( at least) . The simple reason is because there is a clear ABC down from the highs of 2005 lasting 4 years and we have not spent enough time or retraced enough price on the upside since the lows of 2009.



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