Cycle Trading

Oil’s daily cycle runs approximately 30 – 50 days from trough to trough. Tuesday was day 43 and oil is getting deep in its timing band to print a daily cycle low.

Oil has been forming a falling wedge pattern and printed a reversal today near the apex of the wedge. Since oil is deep in its timing band to print a daily cycle low, a swing low forming now has good odds of marking the daily cycle low. A break above 43.91 forms a swing low. Then a declining trend line break will confirm the new daily cycle.

NATGAS is in its timing band for a daily cycle low.

NATGAS’s daily cycle averages between 18 – 24 days from trough to trough. Tuesday was day 22 for NATGAS’s daily cycle. A break above 10.22 forms a swing low and likely will mark the daily cycle low.

And NATGAS in its timing band for an intermediate cycle low.

NATGA’s weekly cycle runs about 18 – 24 weeks from trough to trough. This week is week 24 for NATGAS’s intermediate cycle. So not only will a daily swing low potentially mark the daily cycle low, but a new intermediate cycle low as well.