CRUDE OIL UPDATE (2:00 pm EDST)
Today crude oil is exceeding its March 1st $57.88 high (April contract chart) and making a new high in the current medium-term cycle (which began with the low of $43 on Dec. 24, 2018). This is happening in an overlap area between two reversal zones (the crude oil reversal zone from March 5 - 14 and the new equity reversal zone from March 12 - 21). We could easily see a top any time now in either one of these reversal periods (i.e. sometime before next Thursday) followed by some sort of correction. A steep correction is possible (say, down to the $51 area), but if we get this, it has to bottom either this week or next. If prices push higher well into next week, the correction will likely not be as steep, and we will look to buy at a price above $51. As I've stated before, it is very likely that $43 bottom on Dec. 24, 2018 was the start of a new longer-term 3 year cycle in crude which means that crude prices should be quite bullish for at least the rest of this year. On the sidelines of crude for now and still looking for a good spot to buy.
Today crude oil is exceeding its March 1st $57.88 high (April contract chart) and making a new high in the current medium-term cycle (which began with the low of $43 on Dec. 24, 2018). This is happening in an overlap area between two reversal zones (the crude oil reversal zone from March 5 - 14 and the new equity reversal zone from March 12 - 21). We could easily see a top any time now in either one of these reversal periods (i.e. sometime before next Thursday) followed by some sort of correction. A steep correction is possible (say, down to the $51 area), but if we get this, it has to bottom either this week or next. If prices push higher well into next week, the correction will likely not be as steep, and we will look to buy at a price above $51. As I've stated before, it is very likely that $43 bottom on Dec. 24, 2018 was the start of a new longer-term 3 year cycle in crude which means that crude prices should be quite bullish for at least the rest of this year. On the sidelines of crude for now and still looking for a good spot to buy.
RSS Feed