NEW YORK (TheStreet) -- The rally in the October crude oil futures contract from this week's low near $38 to the current $45 level has occurred with perfectly impulsive symmetry and is mature.
Active traders should prepare for an immediate pullback toward $41.50 in the October futures contract traded at the New York Mercantile Exchange, and the $21 level in ProShares Ultra DJ-UBS Crude Oil (UCO) - Get ProShares Ultra Bloomberg Crude Oil Report, in the coming two to four days! (ProShares Ultra DJ-UBS Crude Oil is an exchange-traded fund that seeks to delivery twice the daily performance of crude oil futures traded at the New York Mercantile Exchange.)
Then, an even stronger rise than seen this week should take crude oil futures toward $51, plus or minus $1, and the ProShares ETF toward 30, plus or minus $1, in late September to mid-October.
This is for very nimble, short-term traders only, as the trend at several larger degrees has become very bullish, with $70, plus or minus $5, as the target for crude oil futures, and $45, plus or minus $5, as the target for ProShares Ultra DJ-UBS Crude Oil, in the next six to nine months.
The decision support engine suggests booking some of the profits made this week, if you had the foresight to buy in the high $30s. If you are flat now, however, DSE suggests awaiting the pullback as described above to establish long exposure ... assertively!
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.