by Vadim Pokhlebkin
Updated: April 06, 2017
Crude oil prices fell sharply on Wednesday (April 5). Said one headline:
"Oil prices ease off one-month high on surprise rise in US crude stockpiles" (CNBC, April 5)
The release of the report did coincide with the sell-off. But look at this forecast our Energy Pro Service made one day before (partial Elliott wave labels shown):
Posted On: April 04, 2017 04:34 PM
Bottom Line: Searching for a top. Further near-term strength is likely, but I continue to suspect that the market is in the latter stages of a countertrend advance.
That forecast was based on the Elliott wave structure of the recent rally. As Steve said: Expect a little more upside to finish the price pattern, but afterwards the larger-degree pattern called for a reversal.
And this is what oil prices did the next day:
It remains to be seen if the April 5 high will indeed mark the end of the rally, as we warned about in our previous story about crude oil. Regardless, this is one more example of how you can anticipate changes in the market's collective psychology, the true driver of price trends, before the news.
You'll probably see many more examples like these during our free Pro Service Open House event on April 12-20.
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