Crude Oil Intraday Rally Review

Oil started its bullish move last week and now has soared once again, which looks like it will keep right on heading north. The problem with this “C” wave is that it “looks” much like a triangle inside a zigzag. Triangles in a zigzag can happen when one trend exhausts itself before another trend change reversal. I don’t think triangles are as popular as I once though, but they are rather on the rare side.

What is extremely popular are diagonal wave structures, that can look like a triangle most of the time.  This crude oil chart can also be the first part of another diagonal wave 1-2, and it could crash right back down to that  $48 price level. Fear can be the main driver of prices, especially anything related to commodities which are leveraged. Fear creates the spikes in both directions, which at times is impossible to figure out what the big trend really is.

I may be bearish short term, but longer term the bullish scenario is still alive. Gasoline has also spiked before crude oil, so this tells me we have a bit of divergence between oil and gasoline. I have no problem when this happens, as there is an entire distilling process that has to take place with gasoline production.

The Gold/Oil ratio is now just a bit below 27:1 which is not an extreme ratio, but still on the rather cheap side when we use gold as money.

I mentioned that I have some major chart issues, but have not been able to pin it down at this time.  I will continue in trying to figure it out, but so far it looks like parts of my chart lists are blocked and I can’t create any new monthly charts. I spent most of the weekend trying to narrow the problem down, but now I have to talk to the Apple tech people to see if  they can help. I think there is a temporary block, but have not narrowed it down all that much.

I’m sure it is just a stupid setting I can figure out as all my charts work if login from an Apple store terminal.