Last week activity in the tanker wars has heated up as drone attacks and crude oil carriers get seized. All the fundamentals would suggest that the oil price is going to soar, yet crude oil crashed late Friday even after the seizure of the second oil tanker.
Attacking shipping just reduces the amount of oil available but it also reduces world trade with an impending recession.
At this time oil could still soar to $56.80 as another zigzag is playing out but a short “C” wave is also a possibility. When I can count 7 waves then a diagonal wave is a high probability but it also complicates any wave count.
I have a Minor degree top but that may be too high of a degree at this time. I use the intraday oil chart to help set-up my Forex Oil Unit trades and have switched between long and short bets for the past week.
I like to bet short when I can because there are no daily trading limits so short bets can travel very fast. I’m constantly reviewing the daily and weekly charts looking for a better fit but at this time I have too many alternative counts to contend with.
We have to see what the rest of July will bring as I still favor the bearish trend.
The Gold/Oil ratio is a bit better but still nothing to get excited about. 25.5 is today’s reading and any numbers that get close to 30 would sure get it close to where crude oil would be cheap again.