Oil formed an inside day on Thursday. This is a bullish signal of an impending daily cycle low.
Oil printed its lowest point on Wednesday, day 32, which places oil in its timing band to form a daily cycle low. An inside day that forms in the timing band for a daily cycle low has good odds of signaling a new daily cycle. At this point oil needs to form a swing low and break above the declining trend line to confirm a new daily cycle. A break above 44.20 forms a daily swing low.
In the Weekend Report I will discuss that once a daily cycle low forms for oil, that it will likely mark the weekly and yearly cycle lows as well.