Crude Signaling Multi-Month Bottom; Natural Gas Projecting Late-May ’23 Low.
05-20-23 – “Crude Oil, Unleaded Gas & Heating Oil have rebounded after plunging from cycle highs on April 10 – 14 ‘23 – when a decisive top was projected in line with an ~11-week high-high-high-(high) Cycle Progression and corresponding 22-week & ~44-week Cycle Progressions as well as a ~76-day high-high-high-(high) Cycle Progression in the XOI.
They are mixed on a near-term basis, with Unleaded Gas rallying to new rebound highs. Crude would not turn its daily trend up until a daily close above 73.19/CLU. The way in which Crude set a double bottom (March & May ’23 lows) is ushering in the potential for a multi-month bottom and the start of a new 2 – 3 month rally.
Natural Gas is showing more signs of an intermediate bottom and could be poised for a larger rally after its initial surge. It peaked right at its weekly LHR (~2.860/NGU) and declining weekly 21 Low MAC, which could spur a pullback into May 26 – when daily cycles next bottom.”
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. Crude is confirming that a bottom is intact while Natural Gas could extend selling into late-May/early-June ’23. Cycles turn very bullish in 3Q ‘23 and should prompt an overall rally into Aug/Sept ’23 (Sept ’23 = ideal time) – when multiple, long-term cycles collide.
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 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 Is 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.