NG has continued to push gradually higher after the large gap up the other week. We have now reached the 123.6% for the a to C wave relationship in the Wave V of what looks to be a diagonal structure. We will need to see a full 5 wave move down with a subsequent retrace and follow through lower before a local high can be considered in and then assess the next move lower for likely levels. It is now more likely that this entire move up is the Minor Degree Wave A of the larger Degree Wave (3) (See daily Chart) and that the next move down will therefore be corrective.
Support in NG is now at 4.141 and a break below there would be an initial sign that we may have seen a local high yesterday.
NG made a huge move to the downside yesterday thus confirming that we do now have the local high in place, most likely as an A wave up. The move down thus far does not yet look complete and should still see a Wave 4 then 5 lower before we then getv a retarce in NG. Once we have this structure in place we should then be able to determine the probable lower targets more accurately.
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CL Charts & Morning Update:CL has continued to extend lower and it is now clear that the larger intermediate Degree Wave (3) has completed at the recent high and we are now in the Intermediate Degree Wave (IV). The current move down which is clearly an impulse wave still has lower levels to be seen before it is complete as shown in the 240 & 60 Minute Charts. This is likely the Minor Degree Wave A down after which we should see a deep retrace before a further large decline in the Minor Degree wave C down into the low $40 area.