Crude Oil Intraday Crash Review

Crude oil has been very uncooperative as it refuses to act out the script I had started.  Any good impulse I had, died as soon as the critical waves started to overlap. If crude oil does stop short of going to a new low, then another diagonal set of waves could happen. The worst case scenario would be that the late July peak is a potential “D” wave in an unfinished triangle in Minor degree.  If the worst case is still to play out, then $42 or $43 could still be the  price target that would have to get hit. 

Right now crude oil is getting cheaper as the Gold/oil ratio is sitting at 27:1 This is still rather cheap and the spread may still widen a bit, if oil keeps crashing. There are only 3 directions that charts can travel,  either the bear market still needs to finish,  or there is a bullish phase still to come.  Any big bullish phase can be a false bull market, but the difference is the degree level of any big bearish rally. 

The $47.50 is one price level where any short term bullish scenario can still work. Today’s decline was rather sharp and steep, which is a bullish sign. 

There is just too much turmoil in the oil market these days,  to take any fundamental inventory numbers seriously. I have mentioned it before, but if you hear fundamental news being spouted more than three times, then this news is already irrelevant. 

It gets worse if our friends or family members are parroting the same news. You may laugh, but we are in an electronic delivery world, where news travels fast. How fast? As fast as it takes the wave to travel around a hockey arena, or as fast as you can count out 20 even Fibonacci numbers from a list.  😉 

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