Cycle Trading: Seeking Oil's Daily Cycle Low
|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 has not yet confirmed a new daily cycle.
The decline into the day 21 low caused the 10 day MA to drop steeply. After declining for 2 months oil seems to be forming a base which is allowing the 10 day MA to flatten out. The bullish divergence developing on the oscillators indicate that day 21 was an early DCL. A close above the 10 day MA and the declining trend line will have us label day 21 as the DCL. A break above 53.05 will confirm the new daily cycle.
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