This is a very rough wave count as I can’t count it as an impulse rally due to just too many diagonal wave structures. There are big differences between the May contract and this June contract that very few people see or even mention.
Brent has peaked on the 25th and about the $75.50 price level. Any Brent move that will turn into a correction cannot completely retrace the run that oil has had since the 2016 bottom. All we can do is sit and wait for this to play out as a 60% net crash can happen.
Actually, Brent oil is still under a death cross and oil would have to soar again to complete the impending golden cross or a couple of quick moves Brent oil could be back into a death cross. Right now the 2 MA lines are making a tweezer type of a move so something should happen to make this summer a bit less boring.
There are not daily trading limits in most commodities which is only one of the reasons why oil does produce wild moves in both directions.
I don’t have a very big Gold/Brent ratio database in progress but we are sitting at about a 17:1 ratio right now which is the most expensive Brent has been this year. We did record a 15:1 ratio, so Brent is very close to record expensive ratios. again.
Oil pushing record highs recently is exactly what the elected officials want as they conduct a war on fossil fuels. All the climate change alarmists are nowhere to be seen as they should be jumping for joy about higher gas prices.