Oil Buy Signals Validated

Oil Buy Signals Validated;
Overall Rally into Jan. ’18 Likely!
Crude Should Soon Confirm.

 

08/30/17 INSIIDE Track:

 

Gold, Oil & Middle East II

2 – Synergy is the key.  It is the convergence of analysis in other markets and cycles in other arenas, however, that has captivated my attention.  Oil & the Middle East are two of those…

For the past 2 – 3 years, the overall outlook for Crude was to set a Major, multi-year bottom in early-2016 and then undergo a 1 – 2 year bottoming process until a secondary low was/is expected – in 2Q/3Q 2017.

As repeated constantly since early-2016, longer-term cycles would not begin to turn bullish until Sept./Oct. 2017 – the same time that Middle East cycles collide.

The energy complex has adhered to this outlook and Crude is setting the stage for a more sustained advance in the coming months.

Unleaded Gas & Heating Oil are leading the way, turning their weekly trends up in July & confirming a multi-month bottom.  They provided a textbook pullback into mid-August and then resumed their advances, adding focus to the expected upturn in diverse cycles projected for Sept./Oct. 2017

The intriguing aspect of the oil complex is how all three markets – which often have conflicting cycles due to seasonality and cracking – are projecting bullish movement in Aug./Sept. ‘17–Jan. ‘18.

In addition to already-discussed Crude cycles, Heating Oil has a 12-month/360-degree low (Jan. ‘15)–low (Jan. ‘16)–high (Jan. ‘17)–high (Jan. ‘18) Cycle Progression projecting a peak in Jan. 2018.

Meanwhile, Unleaded Gas provided an overlapping 12-month/360-degree high (mid-‘13)–high (mid-‘14)–high (mid-‘15)–high (mid-‘16)–low (mid-‘17) Cycle Progression inverting that cycle just as it timed the late-June 2017 bottom.  [**’Mid’ refers to 1 – 2 weeks on either side of June 30/July 1.]

A developing ~7-month low-low-(high?) Cycle Progression could also spur higher prices into January 2018.” 

 

Oil markets are confirming major (1Q 2016) & secondary (mid-2017) lows and increasing the potential to take off higher in Sept./Oct. 2017.

Heating Oil & Unleaded Gas have powerfully confirmed their July 2017 buy signals and are projected to rally into January 2018 – when multiple cycles converge.  Specific price targets – for the 3 – 6 month outlook – are already taking form and are likely to be reached by/in 1Q 2018.

Natural Gas is projecting a late-2017 rally that could carry it higher into Feb. 2018 – when a 6 – 12 month (or longer) top could take hold.  Middle East cycles corroborate the outlook for Energy markets & pinpoint Dec. 2017/Jan. 2018 as decisive.

See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.