Oil got pummeled as the week ended, but it is too early to tell whether the move will prove impulsive or merely corrective. Regardless, if the futures were to fall to the green line, that would trigger a ‘mechanical’ buy I would rate a fetching ‘7.7’. That implies the July contract would rebound to at least to p=114.33 before falling beneath C=88.53. The longstanding target at 140.12 will remain viable until such time as C is breached. My hunch is that a reverse-pattern bid with the ‘c’ anchored near 107.00 would work if you are trying to bottom-fish a short-term low. ______ UPDATE (June 21, 9:42 a.m. EDT): Here’s a chart for the August contract, with the green line relocated to 98.84.
CLN22 – July Crude (Last:110.27)
