Crude Oil Intraday Gyrations With Oilcoin Commentary!

This is the January 2018 crude oil contract. It’s starting to look like a triangle at this time, or a zigzag to a new wave 1-2 can also work. The triangle could head back down to the $55.20 price level so in the short term we could see some more bearish action.  Elliott Wave triangles do not show up in any wave 1-2 positions, they can  show up in “B” waves and any 4th wave. 

I’m sure the oil bulls will freak out when a deep correction happens, as bearish news could dominate,  as the oil price takes another hit.  It is harder to gauge the bearish mood during intraday corrections, but we have to keep in mind that a much bigger crude oil bullish phase, is still going to come.

Any big bullish phase that’s still to come could take all of 2018 and then some,  for this oil bull market to play out.  If we bring the same mentality to the oil market like there is in Bitcoin,  then any emotional commodities investor will get burned. Commodities are extremely cyclical and these cycles happen much more frequently than they happen in stocks.  From my perspective, I will remain bullish until this entire oil bull market has completed. 

If oil goes to $89 or to the old record $147 (double top), is irrelevant at this stage of the game. All the bearish news they can throw at us will mean nothing, as bull markets do not end when the charts are pointing down. They end when all the experts are in agreement, and are painting us  a wonderful picture with the oil price going much higher.  This may be hard for the majority to understand, but for the seasoned contrarians it’s all old school stuff.   A seasoned contrarian is someone that has been through 3 or 4 bear/bull cycles and has benefited from each one. 

For Bitcoin Zombies, staring at their mobile device, they will be happy to know that a potential “Oilcoin” is being developed! Yes, another ICO  joins the pack of 500 other coin offerings.

The Gold/Oil ratio is sitting at about 22:1, which changed little in the last month or so.  This ratio would have to compress much more before oil gets into an over-bought condition.