So the good news that it seems we will have cheap gasoline prices this summer.
The bad news that most probably we will miss the 3rd daily cycle's rally up to 55-57$.
The stock market decline will drag down oil prices also in the following weeks. Now we are bouncing from the 2nd daily cycle low (46$). I think it will give just a small bounce so everybody who is long in oil use up this 2-5 days of pop to get rid of the long position.
If we are heading down into a correction we can easily have a 50% decline of this few months rally . That would mean 38-40$ oil by the end of summer -middle of August.
I post this chart as neutral because we are still at the beginning of the 3rd daily cycle so I dont suggest to short oil but somewhere next week there could be a good entry point for the shorts if markets keep on falling.
The bad news that most probably we will miss the 3rd daily cycle's rally up to 55-57$.
The stock market decline will drag down oil prices also in the following weeks. Now we are bouncing from the 2nd daily cycle low (46$). I think it will give just a small bounce so everybody who is long in oil use up this 2-5 days of pop to get rid of the long position.
If we are heading down into a correction we can easily have a 50% decline of this few months rally . That would mean 38-40$ oil by the end of summer -middle of August.
I post this chart as neutral because we are still at the beginning of the 3rd daily cycle so I dont suggest to short oil but somewhere next week there could be a good entry point for the shorts if markets keep on falling.