On Thursday we discussed how the bearish reversal was setting oil up for a decline into its daily cycle low. On Monday oil confirmed that it has begun its daily cycle decline.
Oil formed a swing high on Monday that closed convincingly below the 10 day MA. Oil also pierced the daily cycle trend line. Both of these signals indicate that oil has begun its daily cycle decline. With Monday being only day 21 that will allow enough time for oil to drop further so as to turn the 10 day MA lower.
Oil still managed to close above the upper daily cycle band, indicating that oil is in a daily uptrend. Oil will remain in its daily uptrend unless it closes below the lower daily cycle band.
Cycle Trading 
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