Oil: Hurst Cycles - 4th November 2022
Price rises with support from the 18 month FLD to approach our target of around 95. A crucial peak is near with a lucrative short on offer over the next few months.
Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend
Analysis Summary
WTI Crude is likely forming it’s latest 80 day component peak shortly and with it, possibly the 20 week nominal component peak. In our last report we anticipated a 40 day nominal low and proposed a target of around 95, reaching resistance at the 20 week FLD. We can expect price to reach a little further than the current position at the time of writing but it is in the zone for a what could be a crucial bearish reversal over the next couple of weeks. The 20 week FLD (green, medium and short term chart) is likely to be tracked all the way down to the end of November, should the phasing be accurate.
We have mentioned previously that compelling support at FLDs is a sign of a accurate phasing and in WTI Crude we have price straddling the 18 month FLD over the last few weeks (yellow on long term chart). This is a typical sight for Hurstonian…