This is the September crude oil contract which shows the June crash very well. Now we are faced with a much stronger rally than expected which always calls for an instant review, and look for a better fit.
Today oil is producing another spike to the upside so a correction should be due if this “C” wave bull market has another leg to go. Any correction can take oil prices back down to the $57 price level before it starts to crank up again.
You can find many fundamental reasons why oil is in a rally but I a few months from now no one will remember any of the fundamentals. Fear as a motivator is the oldest trick in the book but fear usually, does not last that long.
Commercials are short oil but not by a large amount. The COT reports come out on Friday and we’ll find out if the commercials increased their bearish bets.
The Gold/Oil ratio is 23.48 and with 10 recorded ratios for the month of June, it is the most expensive so far.
At the $66 price level oil would be at a double top and “Truncated” or shorter than a normal looking zigzag.
The June crash is a flat wave pattern because there was a little single zigzag that started out the crash. 3-3-5 is a flat no matter how long the 5 waves decline for.