Gold / Oil :update 04/10/20
little higher for a very important target on the ratio of Gold/Oil
04/10/20 – our target level hit and, if you look closely below, you’ll see 5 waves down .. followed by 3 waves up into a “perfect” SELL PATTERN for the ratio. IF this pattern works (the big if) then expect Crude to strengthen against gold and, perhaps, keep the oil rally going for a little while longer.
one of my readers asked me a question on Gold/Oil ratio. below I have charted SPOT gold / futures oil (continuous contract) – wow, pretty amazing move … take a look at the 1.618 projection target a little higher. that ‘should’ (operative word) cause some resistance. additionally, if we keep this parabolic rise in the ratio then the 12 level on oil doesn’t seem to far fetched, does it? thanks again Ray for the ping … great question and observation. that’s what I see .. hope it helps. Bart
Crude, Chevron (CVX) and Exxon (XOM)
one more wave of selling appears to complete 5 wave sequences across the board …
net-net appears that this bounce will be followed by another wave of selling .. then, some VERY nice targets appear. would maintain patience until lower targets are hit for a LONG opportunity
Crude – BUY PATTERN in/around 52-53
like the EEM … big support here. if we lose it, look out below …
note, the 15 minute and 240 minute patterns … it shows the fractal nature of the market and, in this case, we have a pattern (15 minute (orange w/ dashed black outline) w/in a BIGGER 4 hour pattern (light blue)
kind of cool, I guess.
Emerging Markets and Crude …
CLIFF NOTES: note on the EEM chart below the “time” and “price” pattern that has completed for time but, perhaps, we’ll got up and see 45 as the target. This is very key as it has held the EEM back for over a year. The basic concept of polarity is shown w/ regard to the blue arrows. Now, take a look at the second chart – it’s Crude and EEM on top of each other. They have moved pretty closely together … so, now, the EEM chart get’s interesting. Our thesis is that the EEM pattern will fail – which will send Crude higher OR it will work causing a sell off in the EEM here or around 45 and therefore exert pressure on Crude Oil. Note, Crude closed at the .786 last week ..
Nothing to do, yet. But watch these levels .. .closely.
Loonie, the Dollar and the Oil Services Index
CLIFF NOTES: USD support for BUY opportunity shown//very important divergence present in OSX and LOONIE vs USD. for the life of the data they have moved opposite but for the past 2 years they have rolled together. while they have lead/lagged they have, essentially, been doing the opposite at tops and bottoms. When one tops the other bottoms and vice versa.
so, at times, one could look to the Oil Service Sector and see if a BUY or SELL pattern completed and then look for the opposite pattern to appear on the Loonie vs the USD. For two years that has not been the case .. they are moving together. They could roll together into infinity but something certainly doesn’t make sense …
so compare the commodity currencies (AUD/NZD/CAD) against each other ….BOOM a beautiful SELL PATTERN on the AUDCAD
CLIFF NOTES: Loonie “should” strengthen against the AUSSIE
how about CNZDCAD? not suprising — KIWI is kicking everyones butt right now … it’s at an all time high against the LOONIE w/ strength.