I never nominated where oil can go to, All I said was oil currently resting on the 40 level and chart wise it has broken the support just like what happened to gold. The evidence is there from the chart but what it does not tell you is what happen from Monday.
If only everything is smoothly correlated to USD then we won't need to build a story around anything. Just basic black and white rules and off we go as HC posters minting the dollars. In reality there are usually more to events that are too perfect for logic sometimes.
You are either half full or half empty with your views regarding a low oil prices. I don't know who is right or wrong. I don't care, just want to make money and not get caught on the wrong side whether investing or trading.
I see the collapse in oil as something bad coming but I don't know what. I don't look much at ratio but gold/oil ratio was at elevated levels
http://stockcharts.com/h-sc/ui
I have no idea how to interpret this ratio, is gold expensive or oil cheap. I think I must do some research once and for all with this ratio and try to get to grips with it and how to use it effectively.
