Time to consult with the very long-term chart pattern in crude oil, from the December 1998 low at $10.35, which has a very bullish pattern, into today's high, but also a pattern that is in its final few percentage points of making a multi-month if not a multi-year high. All of the action off of the Jan 12, 2007 pullback low at $49.90 represents the final upmove in the larger 1998-2007 upleg. The relationships between the various legs during the most recent 10-month upmove point ot a target zone of $97 to $102, or an additional 4%-10% climb in crude oil prices prior to the anticipated peak and reversal.

Should such a reversal occur from the vicinity of $97 to $102, then based on this chart, on a weekly basis, a 9-10 year bull market high in oil prices will be established, after which crude should enter a "corrective phase" that could last many months to 3-4 years (in relation to the 9-10 year bull market), and which has a minimum target zone of $78-$75, and then $67-$63. In other words, crude oil prices are nearing a major peak after a 9-year bull market.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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