Crude Oil--Monday Afternoon, May 5, 2008
Unlike gold and bonds, both of which reached impulsive peaks at the climax of the Bear Sterns panic mid-March, the Crude Oil chart never reached its (2.618) goal. That period showed a high around 111.80 in the nearby contract. By the end of that week the contract had fallen under 100. The impulsive goal not having been met at that time, it has been the one market to rally beyond the panic high of March. Today a new high.
The target area is still centered on 124.50.
Once that target is met, and crude joins other commodities in a downturn, there could be an acceleration of the general decline.