Oil dropped over 5 % on Tuesday.
Oil had closed above the lower daily cycle band on day 6 to signal a new daily cycle. Oil lost the lower daily cycle band on Monday and today oil delivered bearish follow through by dropping 5.14% on the day and losing the 10 day MA. Oil appears to be forming a left translated daily cycle. A break below 27.56 will form a failed daily cycle.
The timing band for Oil’s daily cycle low runs from 30 to 50 days. With Tuesday being day 9, that leaves another 4 to 8 weeks for to find its daily cycle low.