Crude Oil: A Gusher Of An Opportunity

By Nico Isaac
On Friday, December 5, crude oil prices plunged to a four-year low after clocking in their second largest weekly loss in energy trading history. And, according to the mainstream experts, oil's woes -- which are intrinsically linked to the global economic slump -- had only just begun.

On this, the following news items from the day say plenty:

* "Oil to plunge below $25 next year if global recession spreads to China." -- Fox News
* "Oil tallies worst week since 1991 as worse-than-expected US jobs data darkened the outlook for energy demand. It doesn't matter what the price is at this point; it's just 'get me out of any position I have.' " -- Wall Street Journal
* "People are exiting as fast as they can. You don't want to invest in anything that has a high correlation with the economy. After the jobless number, any bulls that were left in the oil market will become extinct." -- Bloomberg

Turns out, oil bulls did NOT go the way of the Dodo. On Monday, December 9, crude prices turned up in a powerful four-day winning streak to two-week highs before reversing south on December 11.
(Staying On Crude Oil's Down-Up-Down-Up Side: Elliott Wave International's Energy Specialty Service reveals where the next big move in crude oil could be. Act now for the complete story.)
When it comes to anticipating near- and long-term trend changes in the financial markets, fundamentals do more harm than good. As for getting the job done right, EWI's Energy Specialty Service editor Steve Craig has remained one step ahead of the major twists and turns in crude oil from the beginning.
Case in point: ONE day before oil hit its all-time peak on July 11, 2008, the July 10 Specialty Service acknowledged the downside potential in the market’s near-term future and wrote:
“Two key topping indicators are still evident – extreme bullish sentiment and relentless media attention. Possible third and fourth signs – volatility and cries for more government regulation of commodity trading – are nearing their heads… It all points to a very mature uptrend.”
As for oil's most recent December 5 low, the December 4 Daily Energy Specialty Service forecast presented this bullish case: "I am looking for a credible ending pattern… Once the bottom is in, a substantial advance should unfold" in wave four.
The best part I saved for last: The latest Energy Specialty Service forecast presents the following chart of Crude prices since the year 1859 -- when the first commercial oil well was drilled in the United States. (Some Elliott wave labels have been erased for this publication)



This historical close-up provides the most comprehensive and objective evaluation of crude’s long-term trend out there.
The picture can be seen in its entirety, along with in-depth analysis on every time frame in the latest forecasts of the Energy Specialty Service.. In Steve Craig's own word: “I’m anticipating a volatile, gut wrenching, fear-laden”move in Crude Oil.