Crude oil plunged on Monday morning in response to a news item, and the extent of the follow-through, if any, will tell us a lot about the tone of the market. The drop was sharply impulsive and came two trading days after a three-month high was set at 98.29. After a retracement of part of the move, we now must watch for confirmation of a pattern at an ‘X’ point. Follow-through to a ‘D’ target would suggest that last week’s high was an important turn. Bullish oil traders, however, should watch for a midpoint buying opportunity. (Posted by Doug “harry” McLagan)
