Cycle Trading

Oil broke below the day 23 low last Friday to extend the daily cycle decline.

Friday was day 29, placing oil in its timing band for a DCL. Oil rallied on Monday then formed a daily swing low on Tuesday. Oil closed above the 10 day MA on Tuesday to signal day 29 as the DCL. Then oil ran into resistance at the 200 day MA on Wednesday. We will use a close above the 200 day MA to label day 29 as the DCL. Oil is currently in a daily downtrend. Oil ill remain in its daily downtrend unless it closes above the upper daily cycle band.