CLK10 – May Crude (Last:84.10)

Crude oil might be trying to reverse its five-day downtrend this evening, as the session low is just above a prominent Hidden Pivot.  Traders should watch this bounce and consider entering on the long side if a camouflaged opportunity arises.  If the 83.90 pivot is breached by more than a few cents, we might expect oil to find support at 83.46, another Hidden Pivot.  The futures are probing for a “C” point on the daily chart, and if they find it above, say, the 81.50 level, the chart will remain very bullish.  A move below the 78.86 prior low will turn the daily chart bearish and would cancel a still-active pattern with a “D” target at 88.71.  (Posted by Doug McLagan)  _______ UPDATE (12:49 p.m. EST):  The rally from 83.94 did not get very far, but the 83.46 pivot was surpassed by only three ticks, and we never recommend stops as tight as that in the volatile crude oil market.  Traders who bought at 83.46 were rewarded with about $500 of upside per contract.  Subsequently the futures fell to 82.51.  The 88.71 target is still in effect, but for now we will remove crude oil from the actionables list and await further developments.