CLG24 – February Crude (Last:69.96)

If this so-far modest bounce is going to get legs, it should easily penetrate the 71.74 midpoint resistance of the reverse pattern shown by no later than Tuesday. A decisive move past it would make the futures an odds-on bet to achieve D=74.40. As always, an easy move through so clear and compelling a Hidden Pivot would imply that the uptrend is likely to continue. However, the rally will need to get past the pattern’s 79.67 peak to suggest that a test of autumn’s highs near 88 is coming. _______ UPDATE (Dec 13, 10:18 p.m.): Is this rally the start of an important trend change? If so, it will push past the 71.10 ‘D’ target of this reverse pattern without much effort. Today’s thrust was sufficient to trigger a theoretical buy and some profit taking later in the session, but it will take more than that to reverse hard selling that has persisted for the last ten weeks.