Saturday, February 23, 2013

Crude Oil Daily Chart Update, Crash or Correction?

This is just a quick update with crude oil and it looks like we had a "ABC" crash because the tail end of the "C" wave is near a vertical drop. The start of this crash sure did not seemed to have 5 waves and therefore oil will push higher in the next few weeks or so.  Any "ABC" crash can be completely retraced pushing oil well back up over $100 per barrel again.  Fast downward crashes are just corrections in a ongoing bullish phase and this oil crash fits the bill of a correction not the start of a major bearish phase.  We also have higher lows with the third higher low in progress. Higher Lows is also the sign of a bull market.