SUMMARY

What would you give to pay $0.65 per gallon of gasoline in the USA? Hmm, could such a day ever return? I believe so and here is my multi year timeframe analysis.

Oil made a stratospheric extended 5th wave rise into 2008 and then crashed and burned during the financial crisis. It was a site to behold how the commodity traders were weeping as their net liquidation values evaporated! From an Elliott Wave perspective, the below chart is very somber at best and scary at worst. The 2008 crash represented a five wave down that went vertical. The subsequent ABC (blue) rise was a three wave bounce and since then, WTI price started collapsing again. So, we are in the midst of yet another bounce and once can only wonder, is this the start of a new bull run? I don't think so.

The very large decline thus far is very clearly mapping out a sizable ABC (Red) ZigZag (5,3,5) correction. The A and B are complete and C is well on it's way with one final wave 5 down remaining and yet this will generate a new lower low. The yellow upper wedge flag is very typical of a wave 4 and very likely, IMHO; WTI price will start cratering once again. Not also the very nice alternation between red waves 2 and 4. Wave 2 was an abcde complex and yet wave 4 is a very simple abc! Very classic and vintage! The target is towards prior wave 2. Why? Look at the MASSIVE wave 5 extension! When you see such a sign, you don't walk, but run away after selling everything! Could WTI go to $11 to $22? My analysis says yes.

Now, what event or news could cause such calamity? Honestly, I don't know. However, RN Elliott consistently stated that news or events will arrive to justify the forecast! Maybe solar will become hip; maybe Tesla will reinvent energy! Maybe another nation 10x of middleast oil storage will emerge...who knows!

Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.

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