Oil Markets Remain Strong; Overall Rally into Mid-May Likely.
Oil Markets Remain Strong; Overall Rally into Mid-May Likely.
04/21/18 Weekly Re-Lay:
“Crude Oil, Unleaded Gas & Heating Oil remain positive and are fulfilling expectations for a rally into late-April after bottoming in line with related cycles in early-April. The greatest synergy of cycles arrives on April 26 but a peak could be seen in any of the surrounding days.
On a slightly larger-degree basis, this overall advance – particularly in Unleaded Gas – could stretch into mid-to-late-May – the latest phase of a ~16-week low-low-high-(high) Cycle Progression.
That is significant since it is the mid-point of the ~7-month low-low-high Cycle Progression that 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 15 – 16 week cycle.
On a price basis, 73.50 – 75.20/CL is a 50% rally (of May ’11 – Feb. ’16 decline), the previous low of 4Q ’11 & a more recent, multi-month LLH objective. The Feb. ’18 low created that upside target and it was reinforced by the monthly LHR for April (that carries over into May).
2.2000/RB is a 50% rally (of April ’11 – Feb. ’16 decline) and the rebound high of mid-2015 – the highest level seen since Oct. ’14. It could be tested soon.”
Energy markets continue to surge in line with analysis dating back to mid-2017 and projecting higher levels into 2Q & 3Q 2018 (see April 2018 INSIIDE Track). An intervening pullback into early-May could corroborate. Energy relationship to overall equity market powerfully reinforced. See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.