Elliott Wave 5.0 "Reboot"

Friday, January 8, 2016

Intraday Crude Oil Review: Testing Another Bottom?

I will always try and be consistent in drawing any trend lines in a very parallel fashion, so they work more like a set of goal posts. Bending and shape shifting them would be like moving the goal posts or  stretching one post in a hockey net during the game. In this case I based my trend line on the bottom and created the top with a slight throw-over, which means nothing as this would be very normal.

If oil were to travel much lower then chances are good it would crawl along the bottom trend line once more.  Any sideways pattern could last as long until it hits the top trend line, and a bigger move north would definitely take out the top trend line by a wide margin. 

Right now I can fit  crude oil into a small double zigzag which suggests oil will head higher, but we may not find out until next week.

The gold/oil price ratio is a bit better than 33:1which hasn't moved much in the last few days. 

Every new low can be the last low of 2016 so it is not just another bottom we are after, it would also be a major bottom for 2016. Our high starting in  2016 was about $38.45 so I am sure oil will blast past that number this year.