Crude Oil Intraday Chart Update

Crude oil hit a bottom 2 days ago and is still above $52.17 so far. What I’m expecting is a longer and higher correction which may take oil back up to the $55 price level. Two days is also not long enough for a Minor degree correction to complete which could take until mid next week.

As long as the waves are choppy and overlap then the odds are good that oil prices will not soar to the moon.

So far the decline looks diagonal and the 50-day MA could get sliced while the 200-day MA should over resistance.

With the price of gold blasting upward the gold/oil ratio changed just as fast but it’s still around 24:1. We want that ratio to spread as gold becomes cheaper during this bearish phase.

I think this oil bear party is far from over until most of the oil bulls get butchered or we see then running for the hills.

 

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