Heating Oil Pivot Point
Heating Oil is now at a Critical Pivot Point . . .
Heating Oil has been in a major decline for over 2-years now. Heating Oil is following a two-year Cycle which it has recently completed a new relative low. Presently, prices have pushed up against this 2-year trend line precisely as we're also going into a Seasonal high period for Heating Oil. This 2-Year Cycle should start to press prices upwards again over the next two years.
The above chart shows the weekly price bars and the longer-term trend (which has the greater momentum). The chart below is a Daily chart showing how our Excalibur Trading Method Line also confirms price as pushing towards the tops.
Note also the Seasonal Chart for Heating Oil which has been inserted into the price chart. The Seasonal trend for the last 30+ years has been for Heating Oil to rise going into August and September which is right where the longer-term and the Excalibur Lines have indicated a critical pivot price area. If these Lines are broken on a closing basis on both the Daily and the Weekly Closes, we'll be seeing the beginning of an important new uptrend.
Seasonal buying could be enough to break through the red downtrend lines shown on the charts creating a new uptrend. We'll watch for this, however, this will most likely be another SELLING price area barring any further Middle East crisis. The Excalibur Method will give (those of you who have purchased it) ample warning of which way to play this market going forward. This is a major opportunity to keep watch for in the weeks ahead. - George