From a Hidden Pivot standpoint, there’s good reason for February Crude to reverse course here, if only for a while. The pattern shown is compelling in its clarity; moreover, it came within 7 cents of nailing a tradable low on Tuesday. The low is still tentative, since the $1.84 rally that has ensued could easily relapse to new lows. For the time being, however, we should defer to bulls, and to intercept them only with caution if initiating shorts. For now, use the pattern shown to assess the strength of any buying. A decisive push past the midpoint pivot, 31.47, could set up a ‘mechanical’ buying opportunity for a low-risk, $1 ride.
