CRUDE OIL UPDATE (11:30 pm EST)
I am going to slightly alter the labeling of the current medium-term cycle in crude oil. It appears a new cycle started with the low of $34.04 on Nov. 2 (January contract chart). The sharp rally from that low has already exceeded the high from crude's previous medium-term cycle ($44.60), so this market's trend could be turning bullish (unless prices turn down from today's high at $46.26 for a potential "double top"). We are in a reversal zone through next Tuesday (but that could extend into Thursday for crude), so we could see an early sub-cycle high in this time frame. Any significant correction now could give us a buying opportunity as it is still early in this potentially bullish cycle. A good target to buy could be around $39. We will stay on the sidelines of crude for now.
I am going to slightly alter the labeling of the current medium-term cycle in crude oil. It appears a new cycle started with the low of $34.04 on Nov. 2 (January contract chart). The sharp rally from that low has already exceeded the high from crude's previous medium-term cycle ($44.60), so this market's trend could be turning bullish (unless prices turn down from today's high at $46.26 for a potential "double top"). We are in a reversal zone through next Tuesday (but that could extend into Thursday for crude), so we could see an early sub-cycle high in this time frame. Any significant correction now could give us a buying opportunity as it is still early in this potentially bullish cycle. A good target to buy could be around $39. We will stay on the sidelines of crude for now.
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