•Since
the breakout and confirmation of the February low at $25.93, WTI has reached a
high of $51.65. Along the way, there was a 38% retracement to $35.22, before
the rally to $51.65. The rally to $51.65 was 1.6x the distance of the rally
from the low of $25.93 to the high at $41.87. This is Fibonacci application on
price.
•What
about Fibonacci application on time? It took 29 days to complete the first leg
of the rally from $25.93 to $41.87. The correction of this rally took 10 days.
That is 35% of the time taken for the rally. Price retracement of 38% and time
retracement of 35%. The next rally took 47 days from $35.22 to $51.65. 29 days
x 1.618 = 46.92 days. Price extended to 1.6x at 51.65, while time taken was
1.618x.
•It
looks like we may have seen a temporary high at $51.65 and WTI will likely be
doing a correction for some time. The previous correction was simple and fast.
It looks like the next correction is likely to be complex and longer in time
.
