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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.

Now see our latest energy analysis: it can be on your screen in moments, via the fast steps below.

4 ways EWI's Energy Pro Service lets you trade with more confidence

If it's a major energy market, we'll help you stay on top of it.

1. You Get Timely Intraday and Daily Forecasts

Your Energy Pro Service subscription puts a veteran energy market expert in your corner. His goal is to make sure that day-by-day, hour-by-hour, you see the very latest Elliott wave picture. You get intensive intraday coverage to help you catch near-term opportunities and daily forecasts that let you get in front of longer-term waves.

Markets covered: NYMEX: crude oil, natgas, energy ETFs (XLE, etc.)

2. You’re Ready for All Probabilities with Video Overviews

Once a week or more, editor Steve Craig records new video market overviews to show you ALL Elliott wave counts for the Energy complex. You see his outlook in detail – plus, any strong alternatives that may enter the picture. Result: You’re prepared to act on all probabilities.

3. You Get Essential Weekly Perspective

Context is key. Your Energy Pro Service subscription gives you big-picture analysis to help you ride major trends – trends that can last years. This essential perspective puts the near-term moves into context. Together, you get a comprehensive Elliott wave picture for the energy markets at every degree of trend.

4. You Become Part of an Exclusive Community of Savvy Elliott Wave Traders

We're on your side and working for you. If you have a question about the Wave Principle or our analysis, just send us an email. A team member will get back to you. If it makes sense for the answer to be shared with your Pro Service peers, we'll do so (confidentially, of course). If you're having a hard time grasping an Elliott wave concept, our Educational Consultant will find the best resource for you and send it along. We know that we're successful when you are successful. We do everything in our power to make sure that happens.

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