Cycle Trading: Overhead Resistance For Oil – Revisited
|Last week when we looked at oil we discussed two points.
1) That oil looked like it was beginning a new daily cycle.
2) The intermediate cycle set-up gave us the expectation that oil has begun its intermediate cycle decline.
Oil has closed above the declining trend line and the 10 day MA so we can label day 40 as the daily cycle low. However as we discussed last week the peak on week 6 sets oil up for a left translated weekly cycle formation. There is a bearish RSI pattern beginning to emerge on the daily chart that is associated with the declining phase of an intermediate cycle. And oil has begun to close below the lower daily cycle band. This indicates that oil is in a daily downtrend and is another signal that oil has begun its intermediate cycle decline.
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