NatGas on cusp of new impulse wave

• NatGas now retesting weekly resistance level
   
• Bulls attempting to start new impulse wave
   
• Four potential targets identified
   
• Bullish scenario invalid if NatGas breaks below 3.357

The NasGas bulls have been “steering the ship” for some time now on the D1 time frame.

The bears did start a strong correction wave in the current uptrend and even broke through a weekly support level in the process.

But it looks like the bulls are not willing to give up control without a fight.

A possible new impulse wave might have started with the bulls trying to break back through the weekly support turned resistance level.

Using the fractal principle (patterns within patterns) ...

The H4 chart uncovers more insight into a possible opportunity.

On this timeframe, a higher top formed and this confirms more possible bullish momentum in the making as indicated by the D1 time frame.

Although the market structure confirms, caution will have to be used since neither the 50 Linear Weighted Moving Average, nor the Momentum or the MACD oscillators agree just yet.

If the price however reaches the 3.505 level, the indicators should have come in agreement as well.

Attaching a modified Fibonacci tool to a trigger level near the last higher top at 3.505 and dragging it to the last bottom at 3.357, four possible targets can be established:

• 3.564: Target 1
   
• 3.594: Target 2
   
• 3.653: Target 3
   
• 3.727: Target 4

If the price at 3.357 is broken, this scenario is no longer relevant.