We were looking for $67 as a first target, but only got a reading just under $78 or so. So either the count is incorrect or this particular leg down is not yet complete. As it stands we have retraced about 60 % of the recent minor wave 3 down at about $92. All if this in seven days. Give it another day, after which the count may well be wrong.
Today we had a nice risk-on move in oil, worth about $7.25 for just a single day. This is after almost $35 straight down, so when all is said and done it is a retracement, so far, of about 20%. Our first target was and is about $67.50 so we would not get to excited about this Eurozone, we will help the banks, knee-jerk, energy, risk on trade. In EW terms we probable had a triangle wave 4 of 3 and today retraced the “thrust”. A little more up is possible or alternatively we may be getting another triangle, this time wave 4 of the whole 5 –wave move down. Ultimately we should get at least to $67.50
Precision Drilling may just have the same pattern as Netflix had the other day, that is an A-B-C down where C=A, give or take. In PD’s case a “logical target would be around $8 even though the level of the B-wave on the way up is a little lower, more in the order of $6. In Canada things might brighten up a little bit as soon as the frost gets into the ground. These rigs are heavy and consequently easier to operate in the cold , never mind the black flies etc.
Looking at West Texas suggests oil might still want to go a little lower, more in the order of $70 near-term, perhaps enough to give this one a little push down.