Crude has fallen sharply in recent days after coming within 32 cents of an important Hidden Pivot rally target at 105.54 (see inset). The target was significant because it took nine months to reach. Notice in the chart that the 105.22 peak recorded earlier this week exceeded some important highs at 103.12 and 104.22 that occurred, respectively, in March 2012 and July 2011. That implies that any further weakness in the weeks ahead is most likely corrective, and that another bull leg surpassing the recent high awaits. If things play out that way, look for the next bull surge to top at exactly 109.34, a Hidden Pivot target that comes from a rally pattern even larger than the one that produced this week’s peak.
