One day after I last posted about oil, crude prices sank to -50$ per barrel for the first time in history. A mere week later, market action seems to suggest that everything will be fine and dandy now. Will it?
There are two paths that I see moving forward for oil based on the long term elliott count, and neither are pretty.
1) The more optimistic scenario is that we have hit the third wave bottom of the 'C' wave down already. This is better, however, it still suggest months of grinding 4th wave action near these low price levels an a final drop a year or two from now.
2) The devastation scenario suggests that we have only completed the first segment of the third wave, and oil prices will collapse below zero multiple times this year. This would have devastating consequences to the oil & gas industry and the global economy in general.
Which path do you see might play out? Do you believe the governments have saved us, or are we all in for a real shocker soon?
There are two paths that I see moving forward for oil based on the long term elliott count, and neither are pretty.
1) The more optimistic scenario is that we have hit the third wave bottom of the 'C' wave down already. This is better, however, it still suggest months of grinding 4th wave action near these low price levels an a final drop a year or two from now.
2) The devastation scenario suggests that we have only completed the first segment of the third wave, and oil prices will collapse below zero multiple times this year. This would have devastating consequences to the oil & gas industry and the global economy in general.
Which path do you see might play out? Do you believe the governments have saved us, or are we all in for a real shocker soon?