On April 4, I posted a chart of Crude Oil and showed how a 2-2-2 pattern was projecting Crude to fall to the $88 level. At the time, Crude was at $93 and many readers probably rolled out of their chairs with laughter. Hopefully, they have stopped laughing now. Hopefully no injuries were sustained as they fell out of their chairs.These chart patterns are very powerful. They can also be very painful, especially when they fail and price drops even more than predicted. This has been the case lately with some of my past recomends including Gold, Soybean Oil and some Gold and Silver stocks.
In the case of Crude, the embedded chart herein shows what has happened. Price has fallen to the “X” point where the 2-2-2 pattern began (see my April 4th post). In fact, price at its worst yesterday dipped to just under the “X” point before putting the brakes on.
Many Oil stocks are severely negative on a technical basis right now. So, what to do?
The current Sun-Mars conjunction suggests this could be a turning pivot for Crude. The coming Sun 45 degrees Jupiter aspect on April 20 argues likewise. The coming Sun 120 degrees Pluto aspect on May 1 also argues in favor.
If buying a beat up Oil equity now, Crude pricing has got to hold this week’s lows. Any failure of this week’s lows means the 2-2-2 pattern on Crude is failing and you ought to stand aside. So, there is the risk….