Oil Attempts to Form Intermediate-Term Low

December 24th, 2014
in contributors

by Erik McCurdy, Prometheus Market Insight

Oil has experienced a true market crash, declining 47 percent following the peak in June. However, the downtrend is declining at an unsustainable rate and the market has become extremely oversold across intermediate-term and short-term time frames. As a result, the decline will almost certainly be followed by a violent oversold reaction, and the large intraweek rebound that occurred last week suggests that the reaction may be imminent.

Follow up:

Click here to view full-sized image.

Additionally, we are 32 weeks into the weekly cycle following the intermediate-term cycle low (ITCL) that occurred during the week ending May 9 and the latest ITCL is imminent. The intraweek rebound last week suggests that the impending ITCL may have formed this week. A strong advance next week would confirm that the latest intermediate-term low is in place and forecast at least several weeks of strength.

Click here to view full-sized image.

From a short-term perspective, the latest short-term cycle low (STCL) formed early last week.

Click here to view full-sized image.

Looking ahead, a strong alpha phase or beta phase rally that approaches the last beta high (BH) at 69.31 would signal the likely transition to a bullish short-term translation and indicate that the intermediate-term low is in place. Therefore, it will be important to monitor oil market behavior closely during the next several sessions.

We will identify the key developments as they occur in our daily market forecasts and signal notifications available to paid subscribers. To receive our market forecasts and signals, login and then upgrade to a paid subscription.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

 navigate econintersect.com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved