Cycle Trading

Oil formed a bearish reversal on Thursday.

Thursday was day 19 for the daily oil cycle. The new high on day 19 does begin to shift the odds towards a right translated daily cycle formation. However, the bearish reversal has eased the parameters for forming a daily swing high. A break below 51.22 forms a swing high and then a break below the daily cycle trend line will confirm the daily cycle decline. Oil is in a daily uptrend and will remain so until it closes below the lower daily cycle band. A daily low forming above the lower daily cycle band would be a buy signal.