May Crude looks bound for the 43.97 target shown, notwithstanding Friday’s selloff from the secondary Hidden Pivot at 42.41. The stall precisely at that price has validated the rally pattern while implying that a decisive move above p2=42.41 would go to 43.97 exactly. A ‘mechanical’ buy on a pullback to p2 after it has been breached by at least 50 cents would offer pretty good odds for anyone who wanted to get long belatedly. However, I wouldn’t suggest this tactic for entry at p=40.84, where a ‘camouflage’ entry would be a better risk. Doing so ‘mechanically’ at x=39.28 would offer a reasonable bet, but with initial risk of about $1500 per contract. _______ UPDATE (March 23, 7:15 p.m.): Regarding a ‘mechanical’ buy at 39.28, the suggestion remains valid. However, the implied stop-loss at 37.70 is reason to consider using a ‘camouflage’ entry here. That way, you could hope to cut the initial risk from $1570 to more like $60-$80 per contract. ‘Camouflage’ is warranted here for an additional reason: The impulse leg, with its muddy point ‘A’ low, is not of the first quality. _______ UPDATE (March 27, 10:26 p.m): A camouflage entry was possible at 39.27 (15-minute chart, A=38.67 on 3/24 at 11:30 a.m.), but I’ll wait to hear from subscribers who did the trade before I establish a tracking position. Three-quarters of it should have been exited on the rally, since it achieved the 39.31 D target of the camouflage pattern.
