Crude oil rallied to a new all-time high on Friday, July 11 – $147.27 a barrel, intraday. But glance at the headlines, and it's hard to call the reasons analysts cite as the cause for the $5-rally as bullish news. It all boils down to "tensions between Iran and the West and worries about supply" – same old "concerns" that have been with us for months. (Marketwatch.com)
However, from the standpoint of Elliott wave analysis, crude's latest rally makes sense even in the absence of truly bullish news. Why?
At the end of every week, Steve Craig, editor of Elliott Wave International's Energy Specialty Service, records a "Weekly Wrap" for his subscribers. On Friday, June 20, Elliott wave patterns in crude's charts showed that oil traders, collectively, were still in a fearful, bullish mood – thus predicting another push higher for oil.
Learn why oil prices change: Collective mood of energy traders changes them. EWI's Energy Specialty Service can show you now where oil is likely to go next.
That's why from an Elliott wave standpoint, oil was destined to rally with or without the news. Watch this 3-minute clip from Steve Craig's June 20 "Weekly Wrap," where he makes a forecast for a third-wave rally in crude and brent oil contracts.
NOTE: Your need a free Club EWI membership to watch this video.
Latest Oil Forecast: Watch Steve Craig's latest video forecast for oil online now, in the July 11, Weekly Wrap, inside EWI's Energy Specialty Service. Get instant access.