Crude’s rally is probably overdone no matter what the reason for it, but there is room nonetheless for a finishing stroke to 54.23, or perhaps even 55.93. The pattern associated with the lower number is shown in the inset, but the higher target can be calculated by simply sliding down to the lower point A at 40.13. We began Thursday with a 51.07 target which seemed quite ambitious. The futures came within 2 cents of that Hidden Pivot resistance before pulling back to 50.63. We might have inferred buyers were spent but for the fact that the correction yielded to a fresh bullish impulse leg within an hour. That telegraph the second-wind burst that was to follow, along with the further strength implied to reach the targets given above.
