In last night’s subscriber’s Mid-Week Update we took a look at oil.
We discussed how Oil was deep in its timing band to print a daily cycle low. And that a break above 40.47 forms a swing low.
Well, today oil formed a Clear and Convincing Swing Low.
The daily oil cycle peaked back on June 10 and has declined steadily since. Oil printed its lowest point on Monday. At day 61, oil is very deep in its timing band it print a daily cycle low. The clear and convincing swing low broke above the longer term declining cycle trend line (not shown) which confirms a new daily cycle. But I believe that oil is in store for a larger degree rally.
Oil’s intermediate cycle peaked back on week 7. Oil broke below the lower cycle band back on week 15 which signaled the intermediate cycle decline. This daily cycle stretched so long that it is infringing on the timing band for an intermediate cycle low. Oil is forming a weekly bullish reversal which will ease the parameters to form a weekly swing low. So a weekly swing low and declining weekly trend line will confirm the a intermediate cycle.