In previous posts I've covered the pullback from earlier price targets on Crude. Here's an updated CL daily chart:

Click on image to enlarge!

Part of our major support zone included the 100 percent price expansion of the November 11th high to the November 23rd low, projected downwards from the high established on January 12th. I’ve drawn this projection with red trendlines and you can see that it held as the low. This verifies that the rhythm of the upward move is intact. We wouldn’t have been interested in any shorts beyond intraday unless the .786 retracement at 84 had been violated in any case, since it would take that break in order to call the deeper target extensions into play.

The next immediate upside target is the extension at 95.7, the 1.272 ratio of the January 12th high to the low against our support. There’s still a stronger outstanding upside target just below $100 which is another factor keeping us focused on long side. Since last year’s low, there have been pullbacks each time the interim targets have been met, so be on the lookout for another temporary drop from the 95 area in case the pattern is going to repeat. There’s timing resistance coming up for this weekend. That’s derived by calculating the duration of previous upward moves within this rally and projecting forward in time from the current swing low at our major support. Unless we actually see the 95 target by the outside of this “timing window”, Tuesday February 8th, it’s more likely to provide just a temporary hold along the way. However if we actually do see a strong rally to the initial target within the timing resistance period, that’s an extra reason to be prepared for a pullback once again.

For more from Mark including his “Chart of the Day”, visit MJBraun.net.