THURSDAY EDITION

March 28th, 2024

ICONS Home :: Archives :: Contact  
321energy

more 321energy

editorials

 
MID-EAST ESCALATION LOOKING SET TO DRIVE OIL HIGHER...
Clive Maund  Jan 12  

Oil Market Update - IMPACT OF SPREADING MID-EAST WAR...
Clive Maund  Nov 01  

Oil Market Update - IS THE CURRENT UPTREND A "HEAD FAKE"?
Clive Maund  Sep 18  

Oil Market Update - GIANT TOP APPROACHING COMPLETION...
Clive Maund  May 05  

Brazil's Petrobras to cut diesel prices by 9%
Gabriel Araujo  Feb 07  

»» more editorials in the archives

market data

»View Commitment of Traders.

expert analysis & newsletter briefs
featured companies


from the publisher
  Robert J. Moriarty

Welcome to 321energy.



Crude Oil: Uptrend to October


Tom McClellan, Editor
McClellan Financial Publications, Inc
July 22nd, 2020
email: webmaster@mcoscillator.com
website: www.mcoscillator.com




5 months ago, I wrote here about crude oil prices dropping below the $50 level, and how that drop was unfolding in a way that was foretold by gold. In that article, I noted that gold's 20-month leading indication said that more decline was still coming for crude oil prices. I noted that the August 2018 bottom in gold prices was foretelling a crude oil price bottom due in April 2020.

And that is what happened, with near month crude oil prices bottoming on April 21, which was the day after the expiring May futures contract actually traded at negative prices. I had no way of knowing that the decline in oil prices which gold had foretold would be as severe as it was. Gold apparently did not know 20 months beforehand that there would be a worldwide pandemic, and a compounding tussle between Saudi Arabia and Russia over OPEC (and friends) production cuts.

Even though the magnitude of the oil price crash was not completely foretold by gold's prior action, gold did get the timing right. And gold also got it right about the rebound after that bottom, although the magnitude of that rebound was similarly extra robust just to make up for the more robust down move into the low.

Looking ahead, gold says that there is more upside movement yet to come for oil prices, heading toward an oil price top due in October, then a slide down into yearend. This week's chart does not show the full picture of gold's price action all the way up to the present day, and that is on purpose. If I included the most recent gold price data, it would distract the eye from seeing the message about what lies immediately ahead for oil prices. But understand that the scaling for gold prices on this chart only goes up to $1500, and right now gold is trading up near $1800. So over the next 20 months (at least), we can expect a big general uptrend in oil prices, assuming that gold's message continues to work as well as it has been working for the last several years.

Related Charts
Feb 13, 2020
Enable Images to see this Chart
Crude Oil's Drop Was Foretold by Gold
Mar 22, 2018
Enable Images to see this Chart
Crude Oil Swooping Up On Schedule
Dec 24, 2014
Enable Images to see this Chart
Oil Follows Gold's Crash Pattern

Tom McClellan, Editor
McClellan Financial Publications, Inc
July 22nd, 2020
email: webmaster@mcoscillator.com
website: www.mcoscillator.com


Analysis is derived from data believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the reader. Inclusion of information about managed accounts program positions and other information is not intended as any type of recommendation, nor solicitation. We reserve the right to refuse service to anyone for any reason. The principals of McClellan Financial Publications, Inc. may have open positions in the markets covered.

Copyright - 2020 McClellan Financial Publications All rights reserved.



Home :: Archives :: Contact  

THURSDAY EDITION

March 28th, 2024

© 2024 321energy.com



Visit 321gold.com