Because of the ease with which crude oil futures have blown past some ostensibly daunting targets, I’ve projected a move into the low-to-mid-$70s, at least. Technically speaking, however, we’ll need to take the rally one fairly predictable leg at a time. In that regard, Thursday’s price action suggests buyers are in need of rest — perhaps moreso than at any other time during the last month. I say this because the 66.54 target shown, a moderately important Hidden Pivot resistance, neatly contained the most recent upthrust. If bulls had had enough energy to push the March contract still higher over the next 3-5 days, they would have been able to exceed 66.54 by more than just a few pennies. In any event, we’ll sit back and enjoy their pain in the days ahead. The first hint of trouble, basis the March contract, would come on a print at 61.77, just beneath a minor ‘external’ low recorded January 9 on the way up. _______ UPDATE (Jan 31, 5:53 p.m.): The futures have popped through the green line with enough force that a further rally to at least 65.48 seems assured. If buyers shred that resistance, a midpoint Hidden Pivot, it would portend more upside to the 67.28 target in the days ahead. _______ UPDATE (Feb 3, 6:20 p.m.): Friday’s swoon tripped a ‘mechanical’ buy signal at 64.57, stop 63.66, for a shot at the 67.28 target shown _______ UPDATE (Feb 5, 8:43 p.m.): Move to the sidelines for now, since the badly constipated uptrend has stopped out the mechanical trade. There were no reports in the chat room of anyone having taken a position.
