The bullish pattern shown is so fetchingly gnarly that we could expect it to work a second time for a ‘mechanical’ buy if the futures revisit the green line (x=69.78). Another feature of the pattern is that it looks likely to reach the D target at 72.31, notwithstanding that the initial upside penetration of the midpoint Hidden Pivot was feeble. A run-up to the target would be a shame, especially if it is merely prelude to an even bigger rally, since gas prices have recently fallen below the $3 level for the first time in a long while. They hit $2.92 last week in the rural North Carolina town I am visiting, but if my forecast has got it right, pump prices will soon be headed once again above $3.00.
CLQ22 – August Crude (Last:70.45)