WTI/Gold: 06/15/2017


The chart above presents my phasing analysis on the WTI/GOLD ratio. It seems evident that we are on the verge of putting in an 18 year cycle trough at the time of writing. This 18 year cycle trough will mark the beginning of the trend cycle higher in terms of this ratio. It is important to note that the 54 year cycle tough was decisively taken out in terms of this ratio and hence new all time highs in terms of Crude priced in Gold is probably unlikely. I would be looking for this ratio to discontinue its downtrend and start forming a series of higher peaks and troughs in the upcoming environment although, as mentioned, I am not expecting new all time highs to be realized. The Fact that WTI is forming an 18 year cycle trough even in terms of Gold should negate any bearish arguments made in terms of the commodity.


Charted above is the same ratio along with the 9 year FLD. Notice that the 9 year cycle will soon act to advance prices (since the FLD is declining) and should ideally realize its peak in 2019/20 where the current 9 year cycle trough (based on synchronicty) in formation is projected in the future. This is supportive of our outlook on this commodity being bullish for several years into the future.


I have mentioned that I am expecting the 18 year cycle trough to occur in July 05th at the latest. I would appreciate it if Crude was kind enough to be resting at one of the Murrey math lines on the chart above at the time of the low. Only decisive penetration of the 10 week FLD spoken of on the previous post would warrant taking a long position that should ideally be pyramided for the next 3 to 4 years. the 40 week upward VTL has clearly been broken confirming that the decline in question is that of the 18 month wave and once it proves to be complete, the sky is the limit for this particular commodity.



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