Cycle Trading

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We discussed here on Friday morning how NATGAS appears to be forming a daily, weekly and possibly yearly cycle low.

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Last week was week 30 and it was the lowest point since the February spike. Tuesday was day 5 for the NATGAS’s daily cycle and NATGAS has now formed a weekly swing low.

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With NATGAS being so late in the intermediate cycle makes it likely that this weekly swing low will mark the intermediate cycle low. It has been 52 weeks since the previous yearly low. So once a new intermediate is confirmed it will likely also mark a new yearly cycle.

Stocks broke lower today.

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The break lower negated Monday’s swing low. Tuesday was day 37 for the daily equity cycle. Now a break above 1936.34 forms a new swing low. Today’s break lower has made it easier to form a weekly swing low.

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By breaking lower today shifts the parameters of forming a weekly swing low from breaking above 1984.85 from last week to breaking above the current weekly high of 1942.92. And since the previous weekly cycle formed in a right translated manner we can expect this new intermediate cycle to break out to new highs.