Crude oil has now charged higher since my last update and there may be more upside left to go. Even though oil has topped $60 it would have to go above $66 to help confirm my “B” wave bottom in Minor degree.
Today the Gold oil ratio sits at 23.5 which is a bit more expensive. This ratio should keep spreading but If oil stops before $66 then a potential 4 wave rally would be still alive.
Gold is still in a bullish phase as its pushing higher as well. If $1800 is stiff resistance then $1800/23.5 would give us a $76.59 oil price. I have a new set of 5 waves to contend with and they are diagonal wave structures so wild corrective moves can surprise us at any time.
Pipeline bottlenecks and refineries blowing up all seem to create the fundamental fear that the news just loves to hype.
The recent earthquake in Calfornia doesn’t help anybody to calm down but it didn’t take them too long to blame the earthquakes on climate change!