The oil market, US Oil Fund (USO) has made five waves up from the 1998. I am not calling a top. I made these charts over the weekend just as a gauge to assess where price is in the cycle. Assuming the oil market does top in a few weeks, these charts will still be valid. If this wave extends then I will redraw them in the future.
It appears we are in wave 5 of Wave 5. This will require a correction of close to two years. The strength of the next run can be guessed by the depth of the eventual correction.
Charts courtesy of Stockcharts.com
The relative strength of the energy stocks is still very high on the Best Stocks per Industry screen.
Post Modified: July 3rd, 2008 at 12:26 am
Tags: A-B-C Correction · Elliott Wave Analysis · Energy · Market Cycles1 Comment
1 response so far ↓
Wow $42 oil in 2 years? Nice!