On Monday we discussed how oil gave a bearish signal. Oil delivered bearish follow through on Thursday.
Oil was rejected by the converging declining trend line and the 10 day MA on Thursday. Notice that prior to the day 72 DCL, oil had been in an intermediate cycle advance characterized by RSI 05 embedding in overbought and reversing quickly if oversold. That has changed. RSI 05 did not embed in overbought as oil rallied out of the day 72 DCL. With a peak on day 5, oil is setting up for a left translated daily cycle formation which indicates that oil is starting its intermediate cycle decline. If RSI 05 embeds in oversold that will signal that oil has entered its declining phase of its intermediate cycle.
Cycle Trading 
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