Oil printed its lowest point on Wednesday, following the day 5 peak. Wednesday was day 32, placing oil in its timing band for a daily cycle low. Wednesday’s bullish engulfing candle was a signal of a new daily cycle.
Oil delivered solid bullish follow through on Thursday.
Oil formed a daily swing low on Thursday. With oil being in its timing band for a daily cycle low, the over 2% rally for oil along with regaining the 10 day MA makes it very likely that Wednesday hosted the daily cycle low. A break of the declining trend line will provide final confirmation of a new daily cycle.
It also looks more and more like oil is forming its intermediate cycle low as well.
This is week 25 for the weekly oil cycle, which places oil in its timing band for an intermediate cycle low. Oil is forming a bullish weekly reversal which will ease the parameters for forming a weekly swing low. So any bullish follow through next week will likely cause a weekly swing low to print which will signal that oil is beginning a new intermediate cycle.
Cycle Trading 
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