Late last month oil soared to a new record high after which crude oil started to decline and turn bearish. Sure we can just work another correction but to be blunt it’s still far too early to tell. Comparing this June contract top to the December intraday top, we have a different wave count. What else is new as that happens often enough!
This June contract will disappear but for now, we have more than a month before this contract expires.
For now, I will work oil as a potential 5 wave sequence until It gets destroyed or no longer works. I trade oil with the Forex oil units and they make these futures contracts look pretty docile. I’m expecting a much bigger dip as this bearish phase could be just getting warmed up!
Oil hasen’t moved enough to make any big Gold/Oil ratio changes but the COT report tonight may give us a bit more insight.