Bearish Move of A Lifetime in Crude Oil: What We Said Before the Fall
by Robert Folsom
Updated: April 21, 2020
Welcome to Chart Of The Day. I'm Robert Folsom. Bearish move of a lifetime in crude oil, what we said before the fall. Here's a 60 minute chart of crude oil which covers the month of April through the 17th. You can see the strong decline that unfolded from April 9th to the spike high on the 17th so let's back prices up to that time. On the morning of the ninth our Energy Pro Services showed a version of this chart and despite the spike up, said that based on the Elliott Wave pattern, a deeper retreat from the 29.13 rebound high seems likely. To drive home the forecast for subscribers we also included an arrow on the chart pointing sharply downward and price did indeed retreat sharply through April 17th. On the afternoon of Friday the 17th our Pro Services made an even bolder forecast saying we are big picture bearish. Specifically we said, "the next downside price level of significance is the 1998 low at 10.35." Again we included a down arrow to make the point.
This is the same chart now showing what happened on Monday the 20th. Obviously it doesn't look the same because of the once in a lifetime decline in crude that day. If you animate the move from the 17th to the 20th here's what it looks like in the chart program I use. Obviously priced plunged right through the 10.35 level we cited in what seemed like a bolt forecast. No one saw a decline of this scale coming since these aren't normal times. Our Elliott Wave Forecast did anticipate the direction and no not all forecasts workout this way. If you'd like to learn more about our daily and intraday forecast for energy markets, please see the information below.
Our Subscribers Were Ready for Crude Oil 's Volatility
"Linear" market analysis does not work at a time like this. Fast-moving turns and trends -- and extreme volatility -- call for a non-linear method. That is exactly what Elliott Wave forecasts offer you.
Energy Pro Service subscribers were ready for the explosive trend in crude oil, when it was an opportunity.
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