Cycle Trading: Oil Negates Bearish Signal
|Oil formed a bullish reversal on Tuesday to negate Monday's weekly swing high.
Tuesday's bullish reversal formed on the support of the 10 day MA.
Since emerging from its multi year cycle low in late December oil has not delivered anything that looks like an easily identifiable daily cycle low. Oil has embarked on a powerful daily uptrend that has obscured our daily cycle counts. This daily uptrend has been characterized by peaks above the upper daily cycle band and lows above the lower daly cycle band.
The correct strategy in a daily uptrend is buy the swing low. A break above 64.16 will form a daily swing low. That will keep oil in its daily uptrend and deliver a cycle band buy signal.
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