the most of us were hoping the oil price would drop forever, well at least those of us who drive a car or have an oil based central heating. But as the commodity market is no exception and no one-way system it had to stop at one point. So it did. The oil price is rising again and the question now is: Was that it? No more cheap fuel at the gas station?
The Answer Is No
At least not for the next couple of weeks. The price has to recover from its huge drop of the past few months. This massive drop is considered to be a (blue) wave 3 - the longest wave of all five of an impulse. However, as we all know four follows a three and the 4 is a correction move, before the initial (trend) move continues with the final 5.
To Make A Long Story Short
The current correction can last a few days or even weeks. A sensible target area for the (blue) 4 would be between $60 - $70a barrel.
However, the overlying trend is still strong , so it is just a matter of time until the price turns soutwards for the final wave 5. Hence, you will be able to go to the gas station with a smile once again.
I have opened long positions on WTI Crude Oil on all my public accounts, as well as a Brent Oil long position in my private account.