The highest rally target I could have projected using the weekly chart (see inset) was overwhelmed Sunday night when markets opened for abbreviated holiday-weekend trading. This strongly implies the buying will continue, although buyers will need to push above some key ‘external’ peaks made on the way down in 2013 and 2014 to put the presumptive bull market into cruising gear for the long haul. The first of those peaks lies at 21.525, a relatively easy 43 cents above Sunday night’s peak. Once the futures are trading above it, long-term investors could breathe a sigh of relief and look forward to a long and rewarding ride. An even more important peak lies at 25.120, and if it is decisively exceeded, a further push up into a band of resistance centered around $32 would become an odds-on bet. Traders can use any of the ‘external peaks, including the lesser ones denoted with an ‘x’, to set up ‘camouflage’ or ‘mechanical’ entry opportunities as the futures move higher. ______ UPDATE (July 6, 12:48 a.m.): On the hourly chart, the September contract would put a 21.730 rally target in play if the futures push decisively above 20.670. That’s the midpoint Hidden Pivot resistance of a pattern using the following coordinates: A=19.105 (July 1, 7:00 a.m.); B= 21.225 ( July 3); and C= 19.610.
