Let's take a look at the daily chart for May crude futures, the CL contract:

Click on image to enlarge!

After pulling back from a long term 1.618 target extension, crude held the strongest nearby support zone on March 16th. The subsequent rally stalled at the .786 retracement of the March 11th high to the March 16 low, but the pullback from there held at the .382 retracement of the current low to high swing, indicating that there’s still a good deal of interest in additional upside.

Since the .786 retracement resistance is the “gatekeeper” between current price and new swing highs, we’ll need to see a close above this level in order to call the first additional daily upside target into play. That lands just above $111.

If we can start to take out the prior swing high, the timing resistance ratios become a factor as well. The main cluster of timing resistance ratios begin on April 7th and 8th, and there are a few more powerful factors in place for the start of the following week. These ratios are derived by using the amount of time between previous pivot dates and multiplying forward using specific Fibonacci ratios. When several of these ratios line up within 1 or 2 future dates, the strength of Fibonacci price levels are amplified. This particularly holds true when the market is extending beyond previous highs or lows.

If we’re rallying into the price target towards the middle to end of next week, look for the high probability of a hold at those target levels!

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