CLK10 – May Crude (Last:84.33)

After Tuesday’s sharp but short-lived swoon, crude oil looks bullish again.  A print at 84.57 would confirm a new daily pattern with midpoint and “D” targets of 86.62 and 90.74, respectively.  In between those levels is a “D” target of 88.71, described here on April 5.  The session high so far has fallen short of an important prior high at 84.51, visible on the 30-minute chart.  Traders should watch for a camouflaged buying opportunity, perhaps based on a small pattern which impulses to just above the 84.51 prior high.  Stop orders should be ten to twelve cents above any of the three pivots if shorting is attempted.  (Posted by Doug McLagan)  _______ UPDATE (April 15, 05:40 a.m. EST):  Traders should watch the pullback from 86.39 for a Hidden Pivot-based opportunity to get long with limited risk.  The powerful impulse wave from 84.24 to 86.39 on Wednesday morning surpassed a prominent prior high by two ticks, and we might expect a follow-through CD leg to begin soon.  The 30-minute chart gives us a good view of the action, and a 54-cent rally will confirm a pattern so long as the pullback is not too deep.  After the Wednesday rally, the 86.62 midpoint pivot looks dangerous as a place to go short. _______ FURTHER UPDATE (April 16, 03:15 a.m. EST):  Oil has declined enough to call the Wednesday impulse wave into question, so we will take this tout off the actionables list and await developments. The daily chart remains bullish, with the two patterns we have been watching still very much intact.