Oil’s daily cycle peaked last Friday on day 33, where it was rejected by the 200 day MA. A swing high formed on Monday that closed below the upper daily cycle band to signal the daily cycle decline. Today oil breached the daily cycle trend line to confirm the daily cycle decline.
This daily cycle saw oil close above the upper daily cycle band which signals that oil has entered a new daily uptrend. The timing band for oil to print a daily cycle low runs from 30 – 50 days. With today being day 37 it places oil right in its timing band to print a daily cycle low. Oil also printed a bullish reversal above the 50 day MA. If a swing low forms tomorrow it would have formed above the lower daily cycle band which signals that oil has maintained its daily uptrend. A break above 46.73 forms a daily swing low. A break above the upper daily cycle band will confirm a new daily cycle and also confirm oil’s daily uptrend has been maintained.
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