We identified an upside breakout for WTI oil in November 2017. The entire setup was complex and traded for 1.5 years sideways. Our forecast resulted in an attractive trading setup with a very tight stop/loss and attractive upside potential.
The nearest WTI contract reached almost $80 per barrel before correcting. It reached its high on October 3rd, 2018. We sent the very first chart below on October 24th to our clients. That update concluded: “The bullish cycle in crude probably ended three weeks ago.” This interpretation was not only in line with our cross-market interpretation. Our long-term data analysis revealed that crude oil tends to be a late cycle performer. A trend break at this stage most likely implied a cyclical high behind us. Therefore, we turned bearish on crude and looked for attractive risk/reward opportunities to sell the rally. Prices plunged further and reached our intermediate price target quickly.