In my April 14th article on the Crude (CL) contract, I showed how timing factors called for low to be established on April 18th - 19th. Indeed the time and price support held on April 19th and brought a new leg up.

Since trading has rolled to the June contract, we need to establish the next set of targets based on the new front month. Here's a current daily June CL chart:

Click on image to enlarge!

Yesterday price closed above the .786 resistance retracement from the prior high to low just above $112. This places the emphasis on the 1.272 extension ratio of that same swing as a target, just above $116. If we see any sort of pullback before reaching that target, it would be much more likely to be a very small corrective move along the way. In fact the upside swing would remain intact all the way down to $107. We’ll have to evaluate this again once the target is met since then the market becomes more susceptible to a deeper decline. Towards the bottom of the chart, you can see the 50 CCI maintaining above +100. That’s also a strong assurance that upside momentum is very much in charge at this point!

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