Chart of the Day: $CL1 completed 3-drive formation

$CL1 completed a 3-drive formation which coincides with a SSR support and 61.8% retracement of the Dec'18 to Apr'19 up leg. Focus is shifting from demand issues to potential supply issues with Iranian crisis and potential for Russia to break with OPEC. Mother Russia will not break with the House of Saud as the relationship is beneficial to Russia in both economic and geopolitical terms. With Iran pushing back against Trump's maximum pressure and OPEC+1 holding firm, expect oil supply (ex-shale) to be tight and disciplined. Shale is landlocked and too light for industrial applications so expect OPEC+1 heavy sours to drive market direction.

With completion of 3-Drives, odds are for a retest of levels completed during wave 2 & 4 which would coincide with approximately the 61.8% and 78.6% retracement levels.

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