Monday, April 19, 2010

Is Crude Oil ready to Roll over?

After Crude Oil's 78% decline in 2008, it has made quite a comeback, but is it ready to roll over? I have Daily and Weekly Charts posted. The wave structure is certainly open to interpretation, so comments welcome. Although this is technically not labeled as an ending diagonal since some of the waves sport a 5 wave pattern rather than a 3-3-3-3-3 (ending diagonals are supposed to be 5-wave structures, with each wave subdividing in a 3 wave (A up, B down, C up)manner) the move is very choppy and overlapping, telling us this is not an impulsive rise from Crude's $33/bbl low in December 2008. Another new low below $33 is quite possible. We'll let the market be the judge.

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