Energy Markets Remain Positive into May 2019; How High Could Rally Reach?
Energy Markets Remain Positive into May 2019; How High Could Rally Reach?
03/02/19 Weekly Re-Lay: Crude Oil, Unleaded Gas & Heating Oil remain in 2 – 4 week and 1 – 2 month uptrends but have entered a 1 – 2 week period of congestion near their highs. They fulfilled short-term expectations for a quick drop into Feb. 25/26 – the latest phase of a 14-day low-low-low-(low) Cycle Progression – and tested their weekly HLS (extreme downside target for this week – at 55.06/CLJ) and ascending daily 21 High MAC.
That spurred a new rally into March 1, when Crude briefly spiked to a new high – fulfilling its daily trend pattern. However, it was unable to close above its previous high, showing some signs of topping… at least on a short-term basis.
Crude validated that by generating an outside-week/2 Close Reversal lower – signaling potential weakness on a 2 – 3 week (instead of just a 2 – 3 day) basis. The daily trends would need to turn down to confirm that…
On a 3 – 6 month basis, this could be in preparation for another 1 – 2 month uptrend – after that time frame – if Crude neutralizes its weekly uptrend but does not turn it down.
For now, the daily trends are the most important filter as all three markets have also pulled back to retest their daily 21 MACs. If they close back inside those channels, it would be an additional signal of developing consolidation on a slightly larger basis..”
Crude Oil & energy markets reinforcing outlook for overall advance from late-Dec. into ~May 2019 (next phase of 32 – 34-Week & 15 – 17-Week Cycle Progressions) – the same general time when equity markets are expected to peak (Energy/Equity Connection). New 1 – 2 month uptrend poised to take hold in March and carry oil markets higher into May.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.