Crude oil made a new recovery high on Tuesday morning and now has confirmed downside targets of 95.00 and 93.46. After making the high, the market sold off to below the ‘X’ point that activates a pattern, and the midpoint at 95.00 would be well-hidden if it weren’t an exact multiple of five. Oil bulls might want to watch the action around that level rather than working orders ahead of time, but a reversal at the midpoint should not come as surprise if it happens. Below there, the ‘D’ target of 93.46 is well-hidden in every way and looks like a buy. If the ‘C’ point of 96.54 is touched or surpassed beforehand, we should turn our attention to larger bullish patterns. (Posted by Doug “harry” McLagan)
