The September contract ended the week on a not particularly appealing ‘mechanical’ buy signal. I am not wild about it because of the weak, herky-jerky price action so far in the C-D stage of the pattern. Usually, it is the forthrightness of the AB impulse leg that determines whether we should use a mechanical set-up. In this case, however, the C-D leg is the problem. It took a second try to reach the red line once a ‘C’ low was formed, and this suggests buyers were stressed just to keep the futures nominally afloat on Friday. Regardless, if they can push this hoax above the red line (2807.25) on Sunday evening or Monday morning, it would signal more upside to at least 2821.50.
