by Rick Ackerman
Today’s sharp reversal changed a weak bearish trend into a mildly promising bull trend. The big pattern shown, with a 21.390 target, is valid because a ‘buy’ signal has been tripped at the green line. The signal is ‘counterintuitive’ because of the close proximity in price of lows ‘A’ and ‘C’. Since entry risk using the big pattern is exorbitant, I’d suggest cutting it down to size by using ‘camouflage’. This means finding tradable ABC patterns on the very lesser charts that use impulse legs derived from any of the ten or so ‘external’ peaks (indicated with red arrows) made on the way down since July 12. Bulls could breathe a sigh of relief once the 20.330 midpoint resistance has been surpassed, but strictly speaking, the futures will need to get past peaks #1 and #2 to put bulls back on the rampage.