As much as I would love to be bullish on oil especially when a potential golden cross is going to kick in. The June 13 bottom has now created an inverse zigzag which is a small bear market rally.
During all of June, we had a sideways market that sure looks like a triangle. Triangles happen in “4th” waves and “B” waves.
Just as fast as this golden crossing kissed it can also turn right back into a death cross! Everybody is waiting for “Fundamental News” that might send crude oil soaring. Traders or investors can get very emotional during any news release which can send the markets down just as easily.
I trade the WTI Forex units and tried short positions several times this year so I cry a lot if I miss another shorting opportunity. I’m not just after any move as I look for any potential 5 wave sequences I can ride up or down.
If a potential move has a 50/50 chance then I only take small positions or be prepared to bail out fast.
The Gold/Oil ratio is around 24:1 which I would like to see expand some more. I may have to wait until the weekend before I post another oil wave count.