Natural Gas Futures Test Patience with Two Correction Scenarios

Natural Gas Day Futures on the EEX CEGH VTP EGSI exchange are being analyzed using Elliott Wave rules. The price action is considered a Leading Diagonal in wave (1), with waves 1/3/5 displaying motive behavior but still part of a larger Diagonal structure.

The correction following the Diagonal is the subject of debate, with two scenarios remaining valid: a clean, direct correction indicating a Zigzag, or a fast sweep above the prior peak followed by a sharp dump suggesting an Expanded Flat. Market psychology is also discussed, noting that in diagonal/corrective environments, the market tests patience and hunts liquidity.

For traders, the plan involves identifying when the correction is complete and the price transitions into a new motive sequence after breaking the corrective rhythm/channel. Invalidation levels are crucial, marked on the chart as non-negotiable.