In my last article on Crude Oil posted here on Seeking Alpha I explained our expectation of a move in crude to the $69 - $72 zone before turning down to the $39 or lower level. I was not surprised by the enormous controversy the article solicited from those who attacked our methodology of using Elliott Wave and our technical analysis approach in portending such extreme moves in crude oil. The sentiment was nothing short of extreme. While it might be easy to take offence at such remarks, it is par for the course when making price projections that exhibit such extreme volatility in crude. However, for those familiar with trading crude oil, extreme price movements are par for the course, and docile price movements over prolonged periods of time are by far the exception and not the rule in crude. Hence the reason we love using both futures, ETF’s and leveraged ETF’s to profit from these extremes.
In this article I want to present our expectations in crude oil going forward, describe the two most likely scenarios, and explain how we anticipated the move up from the $54.53 level in order to make our subscribers very nice profits.