On the 3-month chart for the United States Oil Fund we can see that several days back a huge “bullish engulfing pattern” appeared on the chart that typically marks a reversal, especially when, as is the case here, the second day of this 2-day candlestick pattern is a big white candle on huge volume with big volume on the days preceding it and after it, as is also the case here. This chart certainly suggests that a big rally may be “in the works”.
But what could cause a big rally in oil? – after all, the world economy is imploding, is it not, made worse by the tariff war? While this is pure speculation on my part, the only thing I can think of is an attack on Iran, possibly even this weekend – that would do it. Would they be crazy enough to do this, given the consequences? Sure they would – the Western World is run by Satanists, they enjoy blowing things up and killing people and we have seen plenty of evidence of this in the recent past. So long as they don’t personally suffer any ill effects they’ve got no problems starting wars and dropping bombs. It is also worth pointing out that there is another reason why drastic action may be taken to support the oil price. The oil market is controlled by powerful vested interests and as we have observed on several occasions in the recent past, oil (Light Crude) has gotten within a whisker of crashing the key $60 level which could lead to a violent plunge, so military action that prevents this happening would be most welcome (to them).
Gold and oil often rally in tandem. In the recent past gold has been soaring and oil dropping. If there is an attack on Iran, global stock markets will crater and gold and oil will be on the same page and soar – this may partly explain the big rise in gold this week and what we are now seeing on this oil based chart.
The reason for posting this now is because there is still time to position yourselves for this before markets close although I must emphasize that this is a speculative suspicion on my part, so you certainly shouldn’t go “betting the farm” on it.
This chart is telling us to expect the unexpected.
End of update. Posted at 2.50 pm EDT on 11th April 25.