Crude & Energy Products Poised for Peak; 3Q ’23 = Next Bullish Phase
04-08-23 – “Crude Oil, Unleaded Gas & Heating Oil have rallied into early-April ‘23 – the convergence of a myriad of weekly cycles as well as a ~10-month low-low-high-(high) Cycle Progression. Since its peak, Crude’s most consistent cycle has been an ~11-week cycle that timed successive highs in June, Aug & Nov ’22 and then Jan ’23.
Along with other cycles (including overlapping 22-week & ~44-week cycles), this ~11-week Cycle Progression has been showing (since signaling an intermediate bottom on March 20/21) it should generate one more high in this sequence – ideally on April 6 – 14, ’23.
That is in sync with a related 74 – 77-day high-high-high-(high) Cycle Progression in the XOI Index, which has been projecting a secondary peak for April 10 – 14, ’23 (April 10/11 = greatest synergy) as part of its overall topping process described for several months.
Crude has tested 80 – 81.00/CLM – its multi-week upside target – on the heels of OPEC’s April 2 output cut announcement and could set a peak at any point between April 6 – 14.
Natural Gas has declined to multi-year lows after rebounding to ~3.35/NGM and neutralizing (but not turning up) its weekly downtrend. That projected a drop to new lows, which has been fulfilled. However, it would not signal a low until a daily close above [reserved for subscribers].”
Energy markets are moving through a multi-month bottoming phase – based on cycles and price indicators – when a 3 – 6 month (or longer) bottom has been expected. That could/should prompt an overall rally into 3Q ’23 (Sept ’23 = ideal time) – when multiple, long-term cycles collide. An initial rally has unfolded and projects an intermediate high on April 10 – 14, ’23… that would subsequently project an intermediate low for late-June ’23. Consolidation should intervene.
The March 17, 2023 issue of The Bridge – Crude, Natural Gas & the XOI Index details key factors to monitor as energy markets head into cycle lows (Natural Gas cycles do not bottom until June ’23) and begin to embark on new advances… that should accelerate into Aug/Sept ’23.
Does this Have Anything to Do with Geopolitical Factors?
When & Where Will Be the Best Place to Enter Long Positions?
How Does This Correlate to Inflation & Interest Rate Analysis?
Refer to the March 17, 2023 issue of The Bridge – Crude, Natural Gas & the XOI Index (FREE with any Weekly Re-Lay subscription of 1 month or longer) for expanded analysis that addresses key aspects of the 2023 outlook for energy markets.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.