Oil Markets Fulfilling Downside Targets
Oil Markets Fulfilling Downside Targets
2 – 3 Month Support Tested; Holding.
Rally into Late-March Possible.
02/10/18 Weekly Re-Lay:
“Crude Oil, Unleaded Gas & Heating Oil have dropped sharply since completing projected rallies from mid-July & early-Oct. – both of which were forecast to ultimately accelerate higher into Jan. 2018, when monthly & yearly cycles projected a multi-month (possibly multi-quarter) top.
Crude, Unleaded Gas & Heating Oil attacked their monthly LHRs in January – the extreme upside price targets for that monthly cycle peak – as Crude perpetuated a 7 – 8 week low-low-low-low-(high) Cycle Progression.
It also fulfilled a larger-degree 31 – 32 week Cycle Progression – projecting a peak on multiple levels & reinforcing the potential for sizeable declines from these multi-month peaks.
Those weekly cycles, combined with all the monthly & inter-year cycles converging in January 2018 (described in 3Q 2017), dovetailed with stock market cycles that also projected a sharp downturn in Feb. 2018.
Crude has moved in tandem with the stock market for most of the past ~3 years, since April/May 2015. Like equities, it accelerated higher in Nov. 2017 and surged into late-January cycles. And, like equities, it has sold off sharply since then.
The initial sell-off was/is expected to spur a drop back toward the Dec. ’17 lows (~56.00/CLJ) – which has just been fulfilled in Unleaded Gas & Heating Oil. That is where intermediate support appears and could spur a rebound.
Natural Gas is also fulfilling multi-month & multi-year cycles and reversing lower. It has turned back down and could decline into April/May 2018.”
Energy markets are fulfilling downside objectives and expected to set an intermediate low near current levels. The weekly trend patterns are clarifying what to expected between now and late-March, when an ~8-week cycle projects the next important peak. Natural Gas remains on track for an overall decline into April/May 2018.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.