This is the April contract which shows we are at a double bottom but if we look at the March contract WTI oil has crashed well below the January bottom already. Oil sure looks like it wants to go to $20, confirming the consensus forecast, which would be a very historic achievement. In 2013 they had no clue that oil could crash to $20 but now everybody is singing the same tune.
A bunch of parrots all trained by the same conductor reading from the same music sheets.
Nobody is talking about the bull market that will come which has happened after every oil glut we ever had. They will tell you it's different this time, but what does that mean? Do we have different degrees of gluts, and do we have to start rating them? All the experts that are calling for $20 oil can never tell you what will happen after this target is eventually reached! They dare not tell us because they would have to step away from the herd and that makes them very uncomfortable. Singing out of tune would be unacceptable.
Using the two April contracts, the gold/oil ratio hit a staggering 43:1 this morning as gold soars and oil crashes. I think the opposite will happen once stocks find a bottom and soar one more time. Oil could follow right along.
For now oil has crossed to a new record low with a three wave pattern and if this were to turn into an impulse, crude oil would have to fall much further.