Cycle Trading

Oil lost the 10 day MA on Monday and then the 50 day MA on Tuesday.

Oil forming a lower high along with a peak on day 8 sets oil up for a left translated daily cycle formation which signals that the intermediate cycle decline has begun. RSI embedded in oversold during the day 39 DCL. RSI then reversed quickly once it became overbought. This change in behavior in RSI aligns with oil rolling over into an intermediate cycle decline. If RSI embeds once again in oversold that will signal the intermediate cycle decline. And with Tuesday was only day 10, oil can trend lower for another 3 – 4 weeks before printing its DCL.