Oil’s rebound has been rather lethargic despite seemingly large percentages. This opens the possibility that we are not yet at the bottom. Of course our longer term view was that we should go lower, maybe a year from now and not necessarily immediately. See our previous blogs. The A-B-C correction for oil, shown on the left, calls for a price in the vicinity of $10 if and when the C leg equals the A, a common occurrence.
Shorter term we may be making a sideways triangle, the market’s way of killing time. That should then lead to another wave down which may reach those targets. This is just a possibility!