Oil broke below its previous daily cycle low today.
Today’s break below the previous daily cycle low forms a failed daily cycle. At day 15, oil can trend lower for another 15 to 35 days before printing its daily cycle low.
By breaking below the previous daily cycle low, oil formed a failed daily cycle which continues the intermediate decline. Allowing 3 – 7 weeks for oil to complete its daily cycle will take the intermediate cycle out to weeks 27 – 31, which is right in its timing band for a weekly low.