Crude Oil Vertical Move Update

This is the January crude oil daily chart contract which has a different price than a weekly chart has. On the weekly charts crude oil has pushed above the early 2017 high. It would be nice to see a bit more, to help confirm that the last 9-10 months,  was just a correction. 

The next target price level to beat will be the $61 price level. We could find stiff resistance at $61 and pattern wise could also become a 4th wave rally top, if  oil was just in a small bear market rally. A bullish phase is either finished or not finished, but large degree bear market rallies will fool us as they can rally for years before they implode.   Any “D” wave rally in Primary degree will certainly fool everyone as they can have the same bullish mood as any wave 1 would give us. 

Gold also has charged up which would distort the Gold/Oil ratio a bit. Using the January contract the Gold/Oil ratio did compress a bit to 22.21:1 which was a very small change. I’d like to see far more compression for a longer period of time before we get too excited that this bull market is coming to an end! 

WTI Soars As U.S. Oil Rigs See Biggest Decline Of The Year | OilPrice.com

The fundamental news can change like the wind, as the world is in turmoil regarding supply and demand numbers.  Markets are not driven by logic or fundamentals,  as our emotions are the primary forces at play.  At this time the 2008 top was a Cycle degree top with the potential of being in a triangle. This can still take all of 2018 to finish, and oil may even go vertical again before it dies. Many claim the oil will die when electric cars become mainstream, and they could be right, but fossil fuels are still used for electricity production all around the world. Our future depends on low cost electricity with India and China are having the lowest cost electrical energy production in the world.  They can afford the juice to crank out Bitcoins and became the center for Bitcoin production. It takes the equivalent of 20 barrels of crude oil, of electricity production, just to create one Bitcoin!   

“To put this in perspective, the total energy consumption of the world’s Bitcoin mining activities is more than 40 times greater than that required to power the entire Visa network.”

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