October Crude’s breach of the midpoint support two weeks ago was predictive of the weakness that followed, as well as of the success of shorts initiated belatedly on rallies to the red line. The 91.43 target has been in play all along, although the squiggly C-D leg of this pattern suggests it has been a struggle for bears to get there. Even so, your trading bias should remain bearish until D is reached, at which point you should consider reversing short positions and go long. Crude continues to deliver precise hits relative to our old target benchmark of 21 cents, but I would still advise using a ‘camouflage’ strategy to initiate trades at implied swing points, rather than trading against the trend with a very tight stop of perhaps 6-8 cents. ______ UPDATE (Sep 3, 9:20 p.m. EDT): Let’s see if yesterday’s wilding spree can get legs. From a Hidden Pivot standpoint, the move would start to look interesting on a print just above the 96.88 peak shown. Please note that a pullback from just above that peak could set up a ‘camouflage’ buying opportunity on the lesser charts.
