Energy is a daily uptrend.
Energy closed above the upper daily cycle band in late November to begin its current daily uptrend. Since then the uptrend has been characterized by peaks above the upper daily cycle band and swing lows occurring above the lower daily cycle band.
Energy’s daily cycle peaked last Tuesday on day 24. A swing high formed on Wednesday. Energy closed below the daily cycle trend line on Thursday to signal the daily cycle decline.
Energy printed its lowest point on Friday, which was day 27. That placed energy in its timing band for a daily cycle low. So while energy did close below the daily cycle trend line, I would have preferred to see a break below the 10 day MA and have the 10 MA turn lower prior to forming a swing low.
However, the swing low that formed on Monday formed above the upper daily cycle band. Cycle band theory strategy is to buy a swing low during a daily uptrend. Stops can be placed below Friday’s low 75.88
Cycle Trading 
Leave a comment