Crude Oil Intraday Crash Review

So far the $47 price level is the low to beat at this time. 7 waves of the impulse looking wave can still form as that would make it a diagonal “C” wave decline. $46 is not ruled out, but the longer oil keeps going up the better the odds of not seeing $46. 

There has been little change, but the Gold/Oil ratio got better as gold touched the $1300 price level. This morning the ratio was about 27.16:1 which just about seems like the norm. I don’t like “norm” as that would suggest an average or fair value of any asset class. A Gold/Oil ratio of 44:1 is not normal by any standards, so when that ratio shifts back, or compresses to the 20-17:1 range, oil is still on the cheap side.

We could run into a situation where oil could run to $89 but when we check the ratio it is sitting at an insane 10:1, then the oil bull market would be ready to crash once again. The experts can spew out all the bullish oil price forecasts that they want, but oil will ignore them and start to crash again when the ratio gets skewed. 

As I post oil has just soared past the last two highs, which is a good sign at this time.

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