Oil broke below the previous daily cycle low on Thursday to form a failed daily cycle and to signal a continuation of its yearly cycle decline.
May is month 15 for the yearly oil cycle, which places oil in its timing band for its yearly cycle low. Oil should break below the previous intermediate cycle low in order to complete its yearly cycle decline.
However, oil has not yet produced a failed weekly cycle.
Oil broke below the week 18 on Wednesday to signal a continuation of its weekly cycle decline. With a peak on week 7, oil has locked in a left translated weekly cycle formation. A break below 42.20 forms a failed weekly cycle. Once that happens oil should complete its yearly cycle decline and then we can hunt for a long entry on crude.