Oil: Hurst Cycles - 2nd January 2023
After making the 80 day nominal low around the 9th of December, WTI Crude is approaching the 40 day nominal peak. This is a potential short for the 18 month component low, phased to come mid February
Essentials: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend | Time Frequency Analysis
Analysis Summary
We delayed our report into WTI crude (and related) from mid December to now in order to allow the most recent 80 day component to progress, prior to a useful point for analysis and trading. The longer phasing is anticipating a trough of the 18 month component shortly and the main point of the analysis in this report is to examine the path toward it - or indeed if it has already occurred 9th December (outlier).
Price is currently at the 80 day FLD resistance and, if the longer phasing is accurate, should find some difficulty here. Should the 18 month component have occurred, price should continue to be bullish and breach the 80 day FLD convincingly, progressing up to the 20 week FLD resistance. This is shown on the Sentient Trader charts below. Our main scenario is the former and more details on entry can be found…