Yesterday crude oil impulsed above an important prior high and is now tentatively aiming for 96.47. Since making the high late yesterday morning, the futures have pulled back substantially and traced out an elegant emerging pattern. If the pullback low (our ‘C’ point) of 91.02 is not revisited in the meantime, a rally back up to 92.39 would confirm the pattern and its targets of 93.74 and 96.47. In the event of a decline below 91.02, traders should recalculate and watch for follow-through to the upside. If and when a pattern is confirmed, use smaller patterns to trade the oil futures with a bullish bias. (Posted by Doug “harry” McLagan)
