Brent Crude Daily Chart Update

The big drop in Brent coincides well with ETI oil but with a small price difference.  The near vertical drop in the oil crash with this daily chart does not do it justice as with a weekly chart this 10-12 day crash was straight down. It looks like there is an expanded pattern involved as the decline is just to steep for a normal 5th wave.  These fast moves travel at maximum speed and maximum speed can never be maintained for any length of time.  One day they will invent an indicator that actually measures the speed limit of the price move.

We should find out soon if the impending counter rally will happen and if it does, this rally should give us 5 waves up in Minuette degree. You can read a 1000 different analysts fundamental opinions, and you will get a 1000 different reasons why oil has crashed. It will make your head spin trying to figure it out. From my perspective technical indicators are far more trustworthy and objective. Besides fundamentals are lagging indicators.

There are many other reasons as well, like the Gold/Brent Oil ratio which reached 23.45:1. This is now the cheapest it has been in all of 2018! I don’t have a big database set-up with the Gold/Brent ratios but enough to see one type of extreme.  Once this rally does start to move then we should see the Gold/Brent ratio start to compress again.

Even the commercials are net long by a good margin but still not at an extreme. The speculators are in their normal Brent Crude bear traps as they figure that the trend is still down. The only way for the speculators to get out of their bear trap, is they have to buy or close off all their short positions.

I have been trading WTI Forex oil units and I added one Brent crude long position as I post.

The Death Cross on this chart happened at the $72 price level and we have witnessed the results of what Death Crosses can do to investments.  I would rather be early about any counter rally than miss a move that could contain a 5 wave run.

 

 

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