June Crude validated the bearish pattern shown on Friday with a day-long game of toe-sies at the red line. That’s a Hidden Pivot midpoint support at 101.18, and its decisively breach would signal more downside over the near term to at least p2=99.05, or possibly to D=96.93 if any lower. So far, however, the breach has been slight, and it would therefore be premature to offer odds of a further fall. In the meantime, we can look to get short ‘mechanically’ on a rally to the green line, but I am recommending that the trade be initiated only via ‘camouflage’. In practice, that would mean using a downtrending ABCD pattern on a 15-minute chart or lower to set up a trigger.______ UPDATE(Apr 25, 5:12 p.m.): Crude’s plunge crushed all of the Hidden Pivot supports identified above, sending the June contract into a boring void of white space on the daily chart. Adding to the boredom was the return of the June futures to the midway point of the intraday range. UPDATE (Apr 28, 10:19): The picture is still moderately bullish but boring.
CLM22 – June Crude (Last:104.73)