Natural gas hit the 161.8% extension target from where a corrective decline began. This correction will ideally move closer to the 50% corrective target at 4.35 and maybe even closer to the 61.8% corrective target at 3.85 before completing wave 4/ and setting the stage for the next impulsive rally higher towards 8.26.

As long as minor resistance at 5.52 is able to cap the upside, we will be looking for more downside pressure towards 4.35. However, a break above minor resistance at 5.52 will indicate that the correction in wave 4/ is completed and wave 5/ towards 8.26 is ready to unfold.