Cycle Trading

Oil went through a brutal 3 month sell off into the late December low. While week 19 is early for an intermediate cycle low, oil appears to be in the process of confirming it as the intermediate cycle.

Oil formed a weekly swing low following the week 19 low to signal a new intermediate cycle. Last week oil followed up by closing above the declining 10 week MA. This week oil back tested the 10 week MA and is now in the process of breaking above the 200 week MA. A close above the 200 week MA would have us label week 19 as the intermediate cycle low.