Energy Complex Poised for Final Spike High… Then Sell-off into June.
Energy Complex Poised for Final Spike High… Then Sell-off into June.
05/19/18 Weekly Re-Lay:
“Energy markets could correct into early-June…
Crude Oil, Unleaded Gas & Heating Oil surged into cycles that portend an intermediate peak – ideally on May 14 – 18. Crude could still spike as high as 73.00/CLM while the products have already reached their primary upside targets.
A high at this time would come at the midpoint of the 7-month cycle that timed the late-Jan. peak (and projects a late-Aug. high) while fulfilling the latest phase of a ~16-week low-low-high-(high) Cycle Progression.
It would also set the stage for an initial drop into early-June. That is the next phase of a ~30-degree cycle that timed lows in early-March, early-April & early-May. That would also fulfill the next phase of an uncanny 8 – 9 week (~2-month) low-low cycle that has timed six consecutive lows since June ‘17…
Crude attacked monthly resistance as the products reached their primary upside targets. It would take a daily close below 70.26/CLM to give the first signs of a reversal lower.
Natural Gas rebounded into May 14 – 18 while turning its daily trend up. Along with its weekly trend & 21 MAC, that projects higher prices in the coming weeks.
A secondary low could be seen on June 1 – 5, the next phase of a 26 – 29 day low-high-low-low-(low) Cycle Progression.”
Oil markets have fulfilled analysis for an overall advance into mid-May. Crude is showing that it needs a final spike high and could still attack 73.00/CL before a peak is intact. A spike high in the next 1 – 2 days would then usher in a quick bearish period, when a sudden sell-off emerges. Cycles & key indicators are portending a negative phase from May 21 into June 4. See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.