Oil Markets Preparing for New Surge.

Oil Markets Preparing for New Surge.

04/04/18 Weekly Re-Lay Alert:

“Crude Oil, Unleaded Gas & Heating Oil spiked down to begin the month of April, with all three neutralizing their daily uptrends (but not yet turning them down).  The products spiked right to their weekly HLS levels with Unleaded Gas also testing monthly support as they created a 27-day low (Feb. 9) – low (Mar. 8) – low (Apr. 4) Cycle Progression.

As long as they do not produce daily closes below 62.06/CLM, 1.9414/RBM & 1.9490/HOM, these energy contracts should resume their uptrends and head to new multi-week or multi-month highs.

Natural Gas remains weak and likely to decline into April 9 – 13 – the next phase of an 8-week high-low-low-low Cycle Progression.  A daily close below 2.638/NGM would further confirm that.

It just rebounded and twice neutralized its daily downtrend, but would not reverse that trend up until a daily close above 2.780/NGM.”

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Crude has corrected since fulfilling its mid-Feb. buy signal, rallying into late-March and setting what is expected to be a 1 – 3 week peak in line with the latest phase of an 8 – 9 week high-high-high-high Cycle Progression (next phase is in late-May).  All of the energy markets have pulled back to key support, where an intermediate low is most likely.  This action is reinforcing the outlook for higher levels in 2Q & 3Q 2018 and setting the stage for a new advance.  Natural Gas is arguing for a drop into April 9 – 13 before a rally takes hold.

See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.