Brent crude: Potential three drive completion to $92-$96
I had previously described myself as an oil bull and Mr. Market is giving me an opportunity to elaborate. So brent crude has been trading a huge channel since peaking in 2008 with the last major trough in 2016. Long story short, brent crude is on track to test the upper boundary of the trading channel at c.$96. Try to follow the sequence:-
AB leg: Feb to May'18
BC leg : May to Aug'18
CD: troughed in Aug, confirmed in Sep and CD leg is advancing in a three drive formation.
Oil bulls have to thank Trump for putting Iran out of action and potentially the Saudis too. Guess what? The Saudis holds the key to incremental supply addition to offset the drop caused by the Iranian sanctions and the oil majors can't ramp up fast enough anywhere else as we head into the Northern hemisphere winter... Go oil!
I apologize for using an Elliot impulse wave annotation but I think it is clearer than the standard TradingView three drive annotation.
AB leg: Feb to May'18
BC leg : May to Aug'18
CD: troughed in Aug, confirmed in Sep and CD leg is advancing in a three drive formation.
Oil bulls have to thank Trump for putting Iran out of action and potentially the Saudis too. Guess what? The Saudis holds the key to incremental supply addition to offset the drop caused by the Iranian sanctions and the oil majors can't ramp up fast enough anywhere else as we head into the Northern hemisphere winter... Go oil!
I apologize for using an Elliot impulse wave annotation but I think it is clearer than the standard TradingView three drive annotation.
