At the $60 crude oil price level a small H&S pattern was starting to take shape. The speed of the June rally was just too fast as a near vertical spike makes this a candidate for being a bear market rally.
Diagonal 4th wave rallies can explode and come back hard and travel much higher than expected but it’s quite normal for diagonal wave structures.
This oil rally can also fit into an expanded pattern so 100% retracement could happen.
I never try to put alternate wave counts up in the same chart but I switch back and forth until a wave count sticks longer than normal. I may have to lower my 5 waves in Minor degree down to a diagonal 5 waves in Minute degree but for now, this will do.
The Gold/Oil ratio is at 24.7 but I would like that to expand much further.
The action may be in the pipeline battles with refineries blowing up and pipelines getting old!
Have A Great July 4th America!