Cycle Trading: Bearish Signs For Oil
|Oil formed a bearish reversal on Thursday.
Thursday was day 25 for the daily oil cycle, placing oil 5 days shy of its timing band for a daily cycle low. The are bearish divergences developing on the oscillators, which often precede a cycle decline. The new high on day 25 assures us of a right translated daily cycle formation. Thursday's bearish reversal does ease the parameters for forming a daily swing high. A break below 60.14 will form a daily swing high. Then a close below the daily cycle trend line will confirm the daily cycle decline. Currently oil is in a daily uptrend. If a swing low forms above the lower daily cycle band then oil would remain in its daily uptrend and trigger a cycle band buy signal.
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