Cycle Trading: Is Oil Ready To Cross The Line?
|Oil ran into resistance at the 200 day MA last week on day 17. Oil then formed a swing high on and lost both the 10 day MA and the 50 day MA on to signal that the daily cycle decline has begun.
Oil printed it s lowest point on Thursday, day 20, which is early for a DCL. Oil should have continued lower for another 2 to 4 weeks before printing its daily cycle low. But oil delivered a bullish surprise on Friday by forming a swing low and recovering the converging 10 day MA and the 50 day MA. Oil then delivered bullish follow through by retesting the 200 day MA again on Monday.
Oil is currently in a daily uptrend. There is a bullish RSI pattern beginning to emerge. And there is a bullish crossover on the TSI. If oil closes above the 200 day MA we will label day 20 as the daily cycle low.
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