The futures were technically a ‘mechanical’ buy at 38.92, stop 36.56, on last night’s swoon (see inset). If you slept through the opportunity don’t worry, since, if the bounce continues, there may be additional chances to get aboard at p or p2. I’m not bullish on crude beyond the 45.31 target (basis the May contract) proffered here earlier, but neither am I bearish just because DaBoyz were able to manipulate the price sharply lower following a cartel failure yesterday to enforce supply cuts that could have surprised no one. _____ UPDATE (April 18, 11:23 p.m.): I remain bullish, but only up to around $46, where I expect this dead-cat bounce, which began two weeks ago, to end. Today, crucial short-term resistance should be discernible at exactly 41.88, a midpoint Hidden Pivot associated with p2=43.31 and a D target at 44.75. (5-minute, A=37.94 on 4/7). _______ UPDATE (April 19, 8:08 p.m.): Today’s thrust easily surpassed the 41.88 resistance noted above, raising the odds of a further push to at least 43.31. That’s the ‘secondary pivot’ associated with a D target at 44.75 (60-minute, A=37.94 on 4/7). The futures were a ‘mechanical’ buy on tonight’s pullback to p=41.88, with an implied stop-loss at 41.40 and a 43.31 objective. Since the trade already triggered, however, I’ll recommend the more cautious approach of ‘camouflage’ to night owls looking to get aboard.
