Natural Gas Futures Entering New Motive Sequence According to Elliott Wave Analysis
Natural gas futures are being analyzed using Elliott Wave rules by Mr. Nobody, who is treating the first leg of the market's movement as a Leading Diagonal in wave (1). This compression and overlap structure is characteristic of a Leading Diagonal, but it's essential to note that waves 1/3/5 can appear motive within this pattern.
The core question revolves around whether the post-diagonal correction is a Zigzag or a Flat, particularly an Expanded Flat. Market psychology plays a significant role in this analysis, as the market 'negotiates' rather than trends during diagonal/corrective environments. It tests patience and hunts liquidity before potentially transitioning into a new motive sequence.
The plan involves two scenarios: one aggressive, where the correction is complete, and price transitions into a new motive sequence after breaking the corrective rhythm/channel; and one conservative, which anticipates one more corrective rotation before the larger bullish continuation. Invalidation levels marked on the chart are non-negotiable.