Cycle Trading: Oil Confirms New Daily Cycle
|Oil printed its lowest point on day 21. Even though oil formed a swing low 2 days later, it has been contained by the declining 10 MA and had not yet confirmed a new daily cycle -- until Tuesday.
The decline into the day 21 low caused the 10 day MA to drop steeply. The past 8 trading days oil was contained by the 10 day MA which allowed the 10 day MA to flatten out. Then on Tuesday, oil closed convincingly above the 10 day MA and the declining trend line to confirm that day 21 hosted the daily cycle low. In the Weekend Report I plan to discuss how I believe that not only did oil form a daily cycle low, but a weekly and yearly cycle low as well.
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