Oil Yearly Chart vs Silver Yearly Chart: Oil Geyser Moment Incoming
Look. Just like any of these TA setups, I very well could be wrong. But this looks quite clear to me.
We are in a secular rotation out of stocks and soft assets into hard assets. Commodities do extremely well in these phases. Oil is one of the most important resources for energy purposes.
Entire industries require a steady supply and access to oil.
This type of demand doesn't usually disappear overnight. This type of demand also usually doesn't diminish unless prices get so high, that entire businesses and industries begin to crumble underneath the pressure.
The Oil chart strongly matches the Silver over time. Metals led, because the crisis was obvious to the smartest of money: central banks. Metals were front-run, and now they're struggling.
The majority don't see this Oil rally coming and certainly not one that triples or even does a 10x in price.
This type of rally would CRUSH the economy due to gas prices. It also hints at war. All war machines, weaponry, etc, require oil or oil byproducts.
If this becomes a World War, with multiple superpowers and a destroyed supply of Oil due to the Iran situation, Oil prices can be unhinged from standard perceptions in an instant.
Oil is a sucky thing to make money off of because it usually means escalation. But if it is gonna happen anyway, might as well profit from it.
