Crude & Energy Bottoming Phase; 3Q ’23 = Next Cycle Peak
03-31-23 – “Crude Oil, Unleaded Gas & Heating Oil remain in a bottoming phase with Crude fulfilling downside price targets without (yet) turning its monthly trend down. As long as Crude does not give a monthly close below 71.02/CLM, this bottoming phase would remain intact and would be expected to ultimately spur a rally into 3Q ‘23.
On an intermediate basis, these markets dropped into mid-March & fulfilled near-term cycles while projecting a surge into late-March/early-April ‘23 – the next phase of Crude’s ~14-week cycle and ~28-week cycles – when a high would also fulfill a 42-week/~10-month low-low-high-(high) Cycle Progression.
The XOI Index, after fulfilling criteria for a major top in Jan ’23 (completing a wave ’5 of 5’ of an overall 5-wave advance that began at the March ‘20 low), turned its weekly trend down – confirming a multi-month (or longer) peak is intact.
Natural Gas spiked below its late-Feb low but closed the week right at that level, reinforcing that [reserved for subscribers]… This plunge has powerfully confirmed its 2022 peak, the fulfillment of an ~8.25-year high-high-high-(high), an ~11-month high (Nov ’19) – high (Oct ’20) – high (Sept ’21) – (high; Aug 2022) AND an over-arching 22 – 23 month high (Dec ’16) – high (Nov ‘18) – high (Oct ‘20) – (high; Aug/Sept 2022) Cycle Progression.”
Energy markets are nearing a pivotal juncture – based on cycles and price indicators – when a 3 – 6 month (or longer) bottom is expected. That could/should prompt a major rally into 3Q ’23 (Sept ’23 = Ideal Time) – when multiple, long-term cycles collide. An intermediate high is expected before mid-April ’23.
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.