Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved.
Here are two charts that have been lined up so their time scale is in alignment. The top chart is gold futures and the bottom chart is crude oil futures. As crude oil has risen higher and higher, I have seen the swings in crude oil become the dominant cycle in more and more markets. This means that other markets have come to mimic the cycles in crude oil. This includes the metals, coal stocks, uranium stocks, utility stocks and wide variety of other items. On the two charts below, I have drawn a line starting from the crude oil tops and bottoms up to the top of the gold chart. The swing change in trends, labeled “A”, “B” and “C” identifies where the gold market mimicked the crude oil market. The change in trend labeled “D” is the most recent change in trend in crude oil and this seems to be a significant top in crude oil. You can see on the gold chart that gold is now mincing this down swing and gold is starting to fall. As long as the crude oil price stays high, markets such as gold will continue to mimic the cycles in crude oil.
Crude Oil and Gold
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