Potential Short-term Signal: Oil Market Cycle Analysis

| September 8, 2017

The decline today has caused both short-term cycle oscillators to experience bearish crossovers and a bearish engulf pattern has formed on the daily chart. A close below 48.10 today would generate a cycle high signal and indicate that the beta high (BH) of the current short-term cycle likely formed on September 6.

Cycle translation is in question. A quick rebound followed by an extended alpha phase rally that moves above the alpha high (AH) in late July at 50.17 would reconfirm the current bullish translation and favor additional short-term strength. Alternatively, an extended beta phase decline that moves well below the last beta low (BL) at 45.96 would signal the likely transition to a bearish translation.

Category: Oil, Signals

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