Energy Complex Projects New Surge into Mid-May; Watch Equities.
Energy Complex Projects New Surge into Mid-May; Watch Equities.
05/05/18 Weekly Re-Lay:
“Crude Oil, Unleaded Gas & Heating Oil fulfilled expectations for a rally into late-April, followed by a pullback into early-May, and then another surge into the middle half of May. Crude was expected to see a brief correction and ideally hold above 3 – 5 day support at 66.37 – 66.54/CLM.
That is exactly what transpired with it correcting for 1 – 2 weeks and bottoming at 66.85/CLM as Crude tested & held weekly support (66.96 – 67.11/ CLM) & daily trend support – setting its lowest daily close at 67.25/CLM (holding those support levels).
That also fulfilled intermediate cycles (30 & 60-degree geometric cycles) that projected an intervening low in early-May – arriving ~30 degrees from the early-March & early-April lows while reinforcing a potential (higher) low in early-June 2018 – the next phase of an uncanny 8 – 9 week (~2-month) low-low cycle that has timed six consecutive lows since June 2017.
Overlapping that, energy markets were/are projected to see an overall rally into mid-to-late-May, the latest phase of a ~16-week low-low-high-(high) Cycle Progression and the midpoint of the 7-month cycle that timed the late-Jan. peak and projects a late-Aug. high.
That ~7-month low-low-high-(high) Cycle Progression projected the surge from mid-2017 into late-Jan. 2018. A high around mid-May would reinforce the monthly & yearly cycles that converge in 3Q 2018 – the next phase of that ~16 week cycle.
Crude has a similar 15 – 16 week low-low-high-(high) Cycle Progression converging on May 7 – 18. IF fulfilled, that would project a subsequent high 15 – 16 weeks later, in late-Aug. ’18, reinforcing cycles discussed in the April 2018 INSIIDE Track.
Weekly LHRs are converging around 73.00/ CLM providing a near-term upside target (as Middle East cycles approach).”
Oil markets remain on track for overall advance into mid-May. An intervening pullback into early-May has occurred with Crude holding support and projecting a new multi-week advance. The correlation to the overall equity market is strengthening and corroborating daily cycle highs & lows in stock indexes. See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.