Natural Gas Near Term - May 7, 2025

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Natural Gas (NG) Technical Outlook – May 7, 2025

Is Wave (3) unfolding right now? The setup says YES.

After bouncing from the $2.85 low, Natural Gas has surged and is now forming a classic impulsive wave structure. All major indicators are flashing green:

✅ Momentum & RSI: Bullish crossover confirmed, with RSI holding near 60
✅ Volume: Buyers stepped in hard above $3.50
✅ Elliott Wave: Wave (2) likely completed, Wave (3) is underway with $4.70–4.90 in sight
✅ Cycle Timing: Matches a projected late-May peak before minor pullback
✅ Seasonality: May → June often kicks off major upside runs in NG
✅ COT: Specs still heavily short = fuel for more upside
✅ Chart Patterns: confirmed double bottom with head & shoulders above that needs to be broken

📈 The current pullback may be Wave (2) of (3), with the next leg potentially targeting $4.40–$4.70. Near-term consolidation is healthy, not bearish.

🎯 Trading Levels to Watch

Buy zone: $3.30–3.50

Support: $3.20–3.30

Resistance: $4.40 neckline → then $4.90

Wave (3) projection: $4.90–5.20 if structure holds

🧠 This is a strong technical setup backed by converging signals. We’ll be watching closely to see if NG confirms this bullish roadmap.

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