Cycle Trading

The CRB printed its intermediate cycle low mid March. The CRB rallied out of that cycle low, peaking on day 20, and leaving behind a right translated, 24 day, daily cycle low. And now the CRB is in its second daily cycle following the March intermediate cycle low.

This second daily cycle peaked on day 10 and then formed a swing high last Wednesday. If the CRB was to roll over into a left translated cycle, it should have done so last week. Instead, it appears as if the CRB has set the daily cycle trend line last Thursday. The CRB then delivered more bullish follow through today. Monday was day 14 for the CRB’ daily cycle.

With the current daily cycle high set at day 10, the odds are beginning to shift towards a right translated cycle formation. The bullish follow through today appears to readying the CRB to break out to a new daily cycle high. Should the CRB break above 233.53 it will form a new daily cycle high and also lock in a right translated nature to this daily cycle. It will also see the CRB form its first consecutive higher daily cycle high and higher daily cycle lows in over 10 months.

The intermediate cycle began its yearly cycle decline in June, 2014. An intermediate low formed in March. And this week the CRB is breaching its 10 month old declining weekly trend line which confirms the new yearly cycle.