Crude Oil Could Fall Another 50%
Crude oil prices dropped 38% since October 3. The June 20, 2018 Profit Radar Report published the following analysis and projections:
“The two charts below show two possible longer-term Elliott Wave Theory counts:
- The first one implies that a major top is in.
The second one implies that we’ll see another high before a major top.”
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The November 25 Profit Radar Report stated that trade may bounce from the descending green support trend line, but warned that:
“The 2008 and 2014 decline caution that failure to bounce despite being over-sold can lead to continued losses. In fact, the chart below shows that the chart pattern of 2018 looks similar (perhaps a smaller fractal) to the chart pattern of 2011 – 2015 (blue boxes).”
Oil prices did bounce from the green support line, but it failed to get above 55, which according to the December 9 Profit Radar Report was needed for a bigger snap back rally.
Price is once again nearing over-sold, and a bullish divergence exists, but betting on bounces in a bear market takes impeccable timing.
Continued updates are available via the Profit Radar Report.
Simon Maierhofer is the founder of iSPYETF and the publisher of the Profit Radar Report. Barron’s rated iSPYETF as a “trader with a good track record” (click here for Barron’s evaluation of the Profit Radar Report). The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013, 17.59% in 2014, 24.52% in 2015, 52.26% in 2016, and 23.39% in 2017.
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