Oil continues to rise and is completing wave [w] or wave 2. As we said this week, in the case of wave 2, wave [w] should equal wave [y] which would infer that a top may occur near the 61.8% retracement or around $98 per barrel. The direction in price for oil will be largely influenced by the US Dollar index. While the US Dollar has fallen back, commodities and equities have risen. Oil is no exception.
Spot WTI Oil Daily – August 18, 2012
Click on chart to enlarge
