Oil Delivers Bullish Signals

0 oil

On Thursday we discussed the daily oil cycle. Thursday’s 4.79% drop threatened to cause a left translated daily cycle formation. After Thursday’s drop – if oil closed below the lower daily cycle band, that would also indicate that the intermediate cycle is in decline.

However, oil reversed on Friday.

oil daily

Friday was day 15 for the daily oil cycle and oil delivered some bullish signals:
* Oil formed a bullish reversal off of support at the lower daily cycle band.
* Oil closed above the 50 day MA
* The RSI 05 reversed higher.

These are all signals of an advancing intermediate cycle. A close above 49.94 will form a swing low and mark a half cycle low. Then a close back above the upper daily cycle band will establish that oil is in a new daily uptrend.

This aligns with what is developing on the yearly cycle.

oil yearly 2

May is month 15 for the yearly oil cycle. Over the past 10 years, no yearly oil cycle stretched past 15 months, so oil is due for a yearly cycle low. But once a monthly swing low forms, it will signal that oil has begun a new yearly cycle.

oil yearly 1

And oil is currently forming a bullish monthly reversal. That will ease the parameters for forming a monthly swing low, which is a prerequisite for forming a yearly cycle low. Since May formed a lower low, the earliest a monthly swing low can form will be in June.

Oil is one of the sectors that I cover in the Weekend Report. I also cover the dollar, stocks, gold, the Miners and bonds in terms of their daily, intermediate and yearly cycles.

I am going to extend this week’s the trial subscription offer through Monday. Just click here for the special 6 week trial membership for $15. You will receive 6 weeks of Likesmoney Subscription Service.

The 6 week trial subscription includes:
* The Weekend Report
* The Mid-Week Update
and I also post what I call my Weekend Updates.
The Weekend Updates cover:
* The FAS Buy/Sell Indicator
* Copper
* The Bullish Percentage BINGO

So please click here for the special 6 week trial subscription.

Subscribers can click here.


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