Is Oil's Post-OPEC Crash Signaling The Bottom?
Some technicians note that crude oil may have bottomed / be bottoming in the very short-term after Thursday's nasty down move.
The media coverage of oil's drop Friday is great anecdotal evidence that the short-term low may be in place, but that is not the only evidence off of which some brave bulls are basing their opinion.
The current wave count for crude oil futures is that wave “(iii)” may have just run its course or is just in the process of doing so. Either way, the next move should be a wave “(iv)” bounce from current levels at $67.50 - $69.50 to either $75.91 or $80.96 (each of which is a Fibonacci retracement of the July to November decline).
Once a wave “(iv)” top is made, the next move should be down to either $61.50 (if $80.96 is the wave “(iv)” peak) or $56.50 (if $75.91 is the wave “(iv)” peak). Traders / investors will not want to be long of crude for that move.
Disclosure: Sea Change is long crude oil futures.
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