Crude Oil Intraday Gyrations Review

In the future I may have to knock the degree level down by one, but for now I will leave it as is. What looked like a simple correction could turn into a correction much deeper than originally expected. Since the June 2017 low, crude oil charged up on what can only be described as a diagonal frenzy. The entire rise until the $59 price level, ended up being about $15. A 50-60% net retracement could get  us to about the $50 price level. There is a nice previous bull market dip down there as well, which can offer some great support.

The Gold/Oil ratio is hovering around the 22:1 range, which is still far away from being expensive at this stage of the oil bull market.

As the oil market declines this ratio should spread.  This $60 resistance price level has a big part to play in any impending correction, but if we get a very bearish bottom, then the next leg up would certainly break past $60. 

Many analysts are calling for $40 oil, but we may never see that even with this impending decline.  The worst scenario would be a long drawn out sideways pattern or a triangle. 

The entire chart history of oil starting back in 1850 seems to be a diagonal wave structure, certainly not a picture perfect impulse pattern.  I work big charts from printouts and all I can see at this time, is that oil only has 5 waves in Cycle degree.  After the 5 diagonal waves in Cycle degree are found, then I have no clue what could happen next.  I love working on large, long term charts, but I will never do them in the computer.  We learn nothing by painting a bunch of numbers and letters in our computers, mainly it’s because many are just too lazy to go back and find their mistakes. 

 

Hits: 0

Share this...
Email this to someone
email
Print this page
Print