Crude Oil's Doomed Rally
Tuesday’s rally tiptoed oh-so-coyly up to the secondary pivot of the pattern shown. We’ve been using it to stay confidently on the right side of crude’s balky, doomed rally. Price action has now confirmed the pattern with precise hits at both the middle and secondary Hidden Pivots (p and p2 respectively) , meaning that when the futures finally pop decisively above the latter, we can count on a further rally to exactly 51.39 before we are gifted with yet another predictable — and therefore tradable — downturn.
I am not bullish on crude, not by any stretch, and see the entire move from February’s lows near $27 as a dead-cat, save-the banksters’-sorry-asses bounce. Barring an act of terrorism that shuts down the Hormuz Strait or some such, a move into the low $50s is about as high as I can see this hoax getting. It may have provided some relief for the banksters in their desperate, losing flight against deflation. However, supply-and-demand factors together with the specter of global recession/depression have doomed the rally in commodities, most particularly in crude oil that has been hocked tenfold against bank loans ’round-the-world. Visit our 24/7 chat room and share timely ideas and real-time results with great traders from around the world.
Click on the link for a free trial subscription.