We discussed on 7/4/18 how the divergent energy was heralding the yearly cycle decline for oil. Wednesday’s over 5% drop in oil appears to have begun the yearly cycle decline.
Oil’s dropped for over 5% on Wednesday to close below the upper daily cycle band and the 10 day MA. This confirms the daily cycle decline. The peak on day 11 locks in a left translated daily cycle formation which indicates that the intermediate cycle decline has also begun. At 16 days, oil can decline for another 2 – 4 weeks before printing its DCL. A break below 63.40 forms a failed daily cycle.
In the Mid-Week Update I also detail the status of the intermediate cycle.