Crude Oil Impending Correction?

 

The 2016 bottom has a different price, with these extra bars I have added. The big thing is that this low sure can fit into my Cycle degree wave 4 low. Yes, they are all diagonal wave structures, which contain connecting zigzags.

The bull market from the 1999 bottom to the 2008 peak contained a zigzag, so I would be looking for about the same pattern to develop. The Gold/Oil ratio has hit below 16:1 today, but that may still be not enough to topple or correct this oil bullish phase.

Everybody is talking $100 oil price, but I think the $89 price level might have more importance this time. The most challenging pattern until Cycle degree wave 5 is reached, is 5 diagonals waves, where this would be an “ABC1” wave count in Primary degree.

Heating oil and RBOB gasoline have an 88% reading of bulls present in my recent Market Vane Report (M.V)

This does not mean, that more bulls can’t come to the party, but it means there is not much room left on the bullish side. Any vertical move has a speed limit to it, as most vertical moves cannot be maintained.

Can gold head north and crude oil head south at the same time? Yes, they can, but the gold/oil ratio will not allow that to happen for very long.

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