Today, I'm talking with EWI's Energy Specialty Service editor Steven Craig about why he's got his eyes glued to one particular major energy market.
Nico Isaac: Steve, you emailed me the following 180-minute chart with the subject line: "Big Potential!" On the chart, you labeled the latest price action in this major energy market as a likely end of a small-degree wave ii (red). What is so special about this wave count?
Steve Craig: If my wave count is correct, then this market is about to embark on a third-of-a-third rally.
NI: "Big Potential" indeed. That's the pattern that Ralph Nelson Elliott himself described as "a wonder to behold." Please elaborate more on the personality of these waves.
SC: To loosely quote from Prechter's "Elliott Wave Principle" book, third waves are strong and broad, and the trend at this point is unmistakable. Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series. It follows then, of course, that the middle of a third wave -- what we Elliotticians call the "third-of-a-third" -- will be the most powerful point.
NI: As you watch this energy market, what signs would tell you that your forecast is in jeopardy?
SC: My bullish Elliott wave count will remain viable as long as the prices stay above the first line in the chart (marked "KEY" support). This line is drawn out from the origin of the same-degree wave i (in red). One of the three cardinal rules of Elliott states that wave 2 can NEVER retrace more than 100% of wave 1.
NI: What must prices do in the next day or so to bolster your bullish forecast?
SC: Well, in my latest Energy Specialty Service intraday updates, I identify the next likely upside target that prices should penetrate. Doing so would be a good indication that a third-of-a-third advance is indeed underway.
Steven Craig has lived and breathed energy futures since their inception and knows their every nuance. Combine that with his expert Elliott wave application and you get a potent combination that you can put to work for your futures trading. Subscribe now to Energy Specialty Service and instantly know what he knows.