Crude oil charts are now in the May contract month.
Crude oil has finally started to back off and it will be the basic pulling a rabbit out of a hat trick to see if we can catch the bottom. Overall the pattern was not tall enough so I had to look back to see where another wave 1-2 had formed. I had to go back
to mid February to find it. It was that choppy March beginning that did not fit into a good impulse, but it makes diagonal 5th wave sense.
We have a long way to go, but a correction should be due. How deep is just an experienced guess which would target the previous big low on the charts. Above all we need to see something that resembles an "ABC" decline and hopefully its not a triangle just yet.
I do get triangle phobias as I know how much meaning they have when we get them. I would guess this correction would take the rest of the month to play out so patience is the key as we see what really happens. So far all systems are still a go with this crude oil, rocket ride, as nothing goes up in a straight line forever.
Overall the biggest wave count is still alive as I am working a potential inverted zigzag that still has a long way to go. With lots of luck, maybe this inverted zigzag will blend into looking more like an impulse.
Anything can still happen if we just finished a new wave 1, and we are heading down into yet another wave 2. When the media become filled with bearish horror stories, then the oil market will turn and soar skyward one more time.
This May oil contract and the April gold contract show a gold/oil ratio of a bit more than 30:1 which is still very decent and well within still being very cheap oil when compared to gold. When we get to 15 or 17:1 then we can start to worry. :)