Oil just tested a multi-decade support level.
The 40 level is a support level that stretches back to the early 90’s. This coincides with oil being in its timing band for a 3 year cycle low.
Oil breached the 40 level as it printed its intermediate cycle low on 8/24. The corresponding rally shot up over 30%. Oil has since been consolidating that big move. Oil has been crawling along the 50 day MA for close to 4 weeks. Crawling patterns are typically continuation patterns. Oil printed a possible false break down on Thursday. A swing low formed on Friday with Oil regaining the 50 day MA. .
A break above the upper trend line will signal a right translated cycle is forming. Since oil’s daily cycle usually runs 30 – 50 days so there is still plenty of time for oil to make one more push higher