Cycle Trading

Oil and the energy ETF XLE both formed swing lows today.

Both oil and energy printed their lowest point on Thursday after an extended decline. Thursday was day 24 for oil and day 19 for XLE. This places oil one day shy of its timing band for a daily cycle low, while it places XLE in its timing band for a daily cycle low.

Both formed a swing low today to signal a new daily cycle. Now a break of the daily cycle trend lines will confirm a new daily cycle for both.

NATGAS also formed a swing low on Thursday.

NATGAS printed its lowest point on Tuesday, following its day 13 peak. Tuesday was day 19, which places NATGAS in its timing band to print a daily cycle low. The swing low today broke above the declining trend line to confirm a new daily cycle. This just-completed daily cycle printed a higher high and a higher low over the previous daily cycle, thus breaking the pattern of lower highs and lower lows. The status NATGAS’ weekly and yearly cycle is turning bullish and will be covered in the Weekend Report.