Potential Short-term Signal: Oil Market Cycle Analysis

| October 10, 2013

The advance today has caused both short-term cycle oscillators to experience bullish crossovers and a bullish engulf pattern has nearly formed on the daily chart. A close above 103.56 today would generate a cycle low signal and indicate that the beta low (BL) of the current short-term cycle likely formed on October 9.

A quick reversal followed by an extended beta phase decline that moves below the last short-term cycle low (STCL) at 101.06 would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, an extended beta phase rally of more than 4 sessions in duration that moves well above the recent short-term high at 103.80 would signal the likely transition to a bullish translation.

Category: Oil, Signals

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