Crude Oil Intraday Record Highs Review

 

Crude oil has been cranking up as many fundamentals continually conspired against any bearish calls. 

 WTI Prices Surge On Keystone Spill | OilPrice.com

This news is another example how unexpected events can change fundamental supply and demand numbers. With this surge crude oil has cleared the previous major high of $57.60 back in early 2017.  I’m using an intermediate degree as my base, followed by one crazy pattern that defies any great looking impulse. I’m sure I will have to adjust this wave count at a later date, but at this time we are approaching the peak of the top trend line for the third time. 

A correction should be coming even though bull markets end when the charts are pointing up, but not when they are pointing down. The Gold/Oil ratio has been compressing in the last few days at 22:1 but we need crude oil to compress much more before it becomes expensive again.  A rapid ratio compression move can be an early warning for a correction. This correction may be a bit bigger than what most bulls might expect at this time.  A very fast dip or “mini crash” usually means an “ABC” correction has just happened, which will follow with yet another leg up. 

The bottom trend line may give us a clue where any substantial oil correction can stop at, but a diagonal move sure can make any two trend lines obsolete very quickly. I’m not a fan of trend lines at the best of times as they are extremely subjective, and they have been abused to the point they are useless. 

Crude oil could just drop back down to the $55 price level and then start back up, so there is not just one number oil can turn on.  As I post, crude oil is still struggling to go higher, but oil could reverse just before closing time.