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Crude Oil Clarity: Focus on This!

by Nico Isaac
Updated: November 07, 2018

The chart below of crude oil looks at the final week of October. You can see that after a few days of sideways action, prices turned up on October 26. The question before traders that day was simple: Would crude's price keep rising?

Chart One

At the time, news reports focused on two main events. The only problem was, those events were set to move crude oil in every possible direction.

Event One: The large stock market sell-off, which was supposedly bearish for crude oil.

"Oil Prices Pulled Down by Global Stock Market Plunge"

(Oct. 26 Economic Times)

But, another article said it was a temporary blip for crude oil.

"Oil Prices Steady After Stock Market Plunge"

(Oct. 26 Fox Business)

And, still a third headline claim it could reportedly hold oil hostage for weeks to come:

"Oil is likely to continue to follow the stock market

until conditions normalize, which could take weeks."

(Oct. 26 MarketWatch)

Event Two: Looming sanctions on Iran. They were supposedly bullish for oil:

"Oil Rises Ahead of Iran Sanctions"

(Oct. 26 Reuters)

Until, that is, oil prices decided to ignore the bullish boost:

"Oil falls on Oversupply Worries Despite Iran Sanctions"

(Oct. 26 LiveMint)

All of which was to say: Conventional wisdom could not get its story straight about oil's next move.

But on October 26, our Energy Pro Service wrote one scenario for oil's near-term future, titled "Big Picture Bearish Outlook." There, chief energy analyst Steve Craig drew a bold line pointed down and said:

"The rally should prove corrective and set the stage for further decline.

Trade below the 66.20 overnight low should be a good clue and I'll be looking for acceleration into new low ground to strengthen the immediately bearish case."

Chart Two

From there, crude oil soon committed to the downside, moving below 66.20 and ending October with its worst monthly performance in two years.

Chart Three

So: Every oil trader wants to know whether oil's freefall is finally over.

And, every oil trader can have the answer today -- in our Energy Pro Service. See below for more.


Now You Can Track – And Get AHEAD Of – The Psychology Trends that Often Drive Energy Prices

Crude. Brent. NatGas.

Riddle me this: The news is bullish, but oil and ETFs FALL.

Or, oil inventories are reported full, and prices RALLY.

As a trader, you see it all the time. If you sweep such "inconsistencies" under the rug, you’re missing the point.

Oftentimes, crude and natgas go where traders' psychology goes. And no other forecasting method lets you track this powerful force -- and forecast it -- as Elliott waves do.

What if you had someone in your corner to help you watch the waves of psychology in the energy markets in real time? Someone who stays alert even when you take a break? Whose job it is to help you catch the right move?

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, unleaded, heating oil; ICE Brent; 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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