Oil Bottom

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Oil closed up over 3% on Monday, causing a bullish close to the month of February.

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February was month 11 for oil’s yearly cycle. That places oil in its timing band to print a yearly cycle low. The bullish close for the month has eased the parameters for oil to form a monthly swing low. A break above 34.69 forms a monthly swing low and will signal a new yearly cycle.

But there is even a more significant cycle bottom in play …

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Oil forms a multi-year low roughly every 3 years. February was month 53 for oil’s 3 year cycle. This places oil very deep in its timing band to print a 3 year cycle low.

So the odds are good that once oil forms a monthly swing low that it will signal not only its yearly cycle low, but its 3 year cycle low as well.

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2 thoughts on “Oil Bottom

  1. Pingback: Monthly Swing for Oil | Cycle Trading

  2. Pingback: Monthly Swing for Oil | Energy Traders

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