Stocks have been in a daily uptrend that has been characterized by highs occurring above the upper daily cycle band and lower forming above the lower daily cycle band. Another characteristic is having RSI become embedded in overbought. Monday’s quick bullish RSI reversal is a signal that stocks will resume their daily uptrend. Stocks did form a swing low on Monday. A close above the 10 day MA will indicate a continuation of the daily uptrend and trigger a cycle band buy signal.
Friday was day 10 for the daily Natgas cycle. Natgas closed above the declining daily cycle trend line and managed to turn the 10 day MA higher all of which confirms that day 43 was the daily cycle low. Natgas also broke out above the high from the previous daily cycle. This ends the pattern of lower highs and begins a pattern of higher highs. Natgas is still in a daily downtrend. A close above the upper daily cycle band will end the daily downtrend and begin a daily uptrend.
And I believe that Friday’s bullish signal indicates that Natgas is emerging from its multi year low.
Natgas’ multi year cycle averages 36.5 months. June was month 39, which places Natgas a bit late in its timing band for a multi year cycle low. So once the yearly cycle low is confirmed, it would also indicate that the multi year low has formed. And notice that the rally out of the multi year low tends to be the most powerful for Natgas.
In the Likesmoney Weekend Updates I do a full breakdown of the daily, weekly, and yearly cycles for Natgas.