Natural Gas Futures May Be Correcting, But What's Next?

Natural gas futures are showing signs of a possible correction in their price action. According to an Elliott Wave analysis, the current market behavior is a Leading Diagonal in wave (1), which is a compression and overlap structure with a typical 5-3-5-3-5 rhythm.

The core question here is whether the post-diagonal correction will be a Zigzag or a Flat, especially an Expanded Flat. Market participants are divided on this issue, with two scenarios remaining valid until price breaks the rules: a clean, direct correction favoring a Zigzag, and a fast sweep above the prior peak followed by a sharp dump supporting an Expanded Flat.

The market is currently negotiating, testing patience, hunting liquidity, and once structure is complete, continuation can appear suddenly and aggressively. The analysis recommends being aggressive if the correction is complete and price transitions into a new motive sequence after a clear break of the corrective rhythm/channel, or conservative by expecting one more corrective rotation before the larger bullish continuation.