Cycle Trading

Oil broke below the day 29 low on Tuesday to extend the daily cycle decline. 

Oil printed its lowest point on Thursday, day 43, placing it deep in its timing band for a DCL. Oil formed a swing low on Friday to signal the new daily cycle. A close above the 10 day MA will have us label day 43 as the DCL.    Oil is currently in a daily downtrend.  Oil will remain in its daily downtrend unless it closes back above the upper daily cycle band.

The longer term monthly chart shows that the 50 month MA has been a major support/resistance level. In the Weekend Report will discuss the long term support/resistance level and breakdown what that means for oil’s daily, weekly, and yearly cycles.