CLU22 – September Crude (Last:88.94)

I’d advised against bidding ‘mechanically’ at the green line if September Crude should revisit it, but Friday’s impulsive thrust was powerful enough to suggest that ‘sloppy’ seconds could produce another $5000 winner like the one that played out over two days last week. That implies a ride from the green line (x) to the red (p), a climb that doesn’t look too challenging when visually imagined. Regardless, and unless there’s a swoon exceeding C=88.23, the 108.25 target will remain theoretically viable. _______ UPDATE (Aug 1, 10:48 p.m.): Yes, the plunge to the green line has triggered a mechanical buy, the second such signal from this pattern. My gut feeling is that the futures will achieve p=98.24, good for a one-level ride, but I am not recommending the trade unless you know how to ‘camo’ the entry risk down to perhaps 5% or less of the implied $20k (on four contracts) if C=88.23 were to be stopped out.  ______ UPDATE (Aug 4, 10:54 p.m.): My gut feeling was wrong, for oil is weaker than I’d imagined. Even so, the September contract should get a bounce from here, since bulls got stopped out with today’s dip below C=88.23 of the reverse pattern.