Cycle Trading: Is Oil Ready To Rise?
|Oil was already in its timing band for a DCL when the daily cycle peaked. Once oil closed below the 10 day MA to begin its daily cycle decline I began looking for potential spots for oil to form a swing low. There were 5 times during the 37 day decline that oil traded sideways, which would ease the parameters for forming a swing low. And each time oil broke lower, until Tuesday.
So after declining for 37 days oil maybe finally ready to rally.
There are bullish divergences developing on the oscillators which normally herald a cycle low. Oil printed its first swing low on Tuesday since closing below the 10 day MA. The swing low formed off of the day 70 low, which was well past the normal timing band for a daily cycle low. A close above the 10 day MA will signal a new daily cycle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.