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Independent Analyst
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.
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