Bulls — assuming there are any left — got stomped yet again yesterday when the November contract fell nearly $4. The breach of the midpoint Hidden Pivot support at 82.69 was decisive, implying that traders should try to short an upward retracement to it. If you use a ‘mechanical’ entry based simply on keeping risk:reward fixed at 1:3, a short from 82.69 would require a stop $1.19 above, at 83.88. This is because the potential gain if November Crude falls to the 79.11 target would be 3x $1.19, or $3.57. I’d suggest holding size to a single contract unless you use the ‘camouflage’ technique to get short near p=82.69.
