Oil Markets Bullish into Jan. 2018
Oil Markets Bullish into Jan. 2018
Multi-Month Rallies Accelerating…
Decisive Peak Likely in Jan. ’18!
12/30/17 Weekly Re-Lay:
“Crude Oil, Unleaded Gas & Heating Oil have resumed their uptrends, reinforcing expectations for Energy markets to rally into monthly & yearly cycles converging in Jan. 2018.
That has been discussed since July 2017 and was elaborated on Aug.30, 2017 in the Sept. 2017 INSIIDE Track:
“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…
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. Price action needs to validate that.”
The energy complex has followed & fulfilled that outlook, with fundamental factors corroborating in these final weeks (another application of the 90/10 Rule).”
The 90/10 Rule of Cycles is impacting oil markets as they head into an expected multi-month peak January 2018, triggered by mid-year buy signals in Unleaded Gas & Heating Oil. The final weeks of that advance are often the most dramatic, with strong surges leading into a top.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.