We’ve been using a Hidden Pivot at 55.29 as a rally target for some time, but I’ll suggesting switching to the one shown, at 54.71, because of its exceptional clarity. Initially I viewed this rally as a dead-cat bounce, but I’m not so sure any longer, since crude prices seem to be responding appropriately to myriad geopolitical threats that cannot be dismissed out-of-hand. Although crude is in more-than-ample supply globally, perceptions of surplus could change drastically overnight. In any event, we’ll stay focused solely on technicals to avoid getting confused by mere facts. Most immediately, that implies looking for a tradable top at exactly 54.71. You can use a wide stop-loss if you’re reversing a long position at that price, but otherwise 11-14 cents should suffice. If the stop is easily brushed aside, that would suggest there’s significant buying power remaining to be spent. _______ UPDATE (April 9, 1:22 a.m.): The rally reversed sharply without having gotten any higher than 54.13. However, another leg up is implied by the fact that the high exceeded an important external peak at 54.00 recorded on 3/5. Use the pattern shown to project a target if and when the next rally leg unfolds.
