Natural gas proxy UNG dropped to a low of 7.17 before turning higher. This kept our preferred count alive, that wave i began from the 7.15 low to the 9.99 high and the decline from 9.99 to 7.17 was wave ii. Wave iii now is in motion through resistance at 9.99 for a rally to at least 12.61 and possibly higher.

That said, we need a break above the double bottom neckline at 9.99 to confirm that a long-term low is in place and wave iii higher is in motion. If our scenario is correct, then we will see a new rise in inflation that will hurt the economies and cause more trouble for the banks already hurt by the rising interest rates.