Natural gas is down 0.85% now approaching the 61.8% Fibonacci retracement of the rise from 2.80 to 3.036 (October contract). I have been bullish natural gas the last few weeks but last Friday I warned that a break below the short-term support trend line would be a short-term bearish sign.
Continuation chart:
I closed my longs on Friday and subscribers were notified by an sms.
My view remains bullish, BUT we have to see a reversal to the upside soon. We have to see the 61.8% defended. Confirmation of my bullish view will come once we break through the Kumo (cloud) resistance at 3.
In terms of the October contract, I want a break above 2.98. In Ichimoku terms trend is bearish. This will change on a break above the cloud. Elliott wave wise we should be in the corrective wave C down of wave 2, taking into account that the rise from 2.754 to 3.017 is wave 1.
Currently I have no position in NG but I’m looking to go long again.