I have modified my to give a lot more accurate buy and sell signals, length is double length, and %D is 3 times %K. You can see many examples on my chart where %K heads towards %D but doesn't quite cross. Afterwards it keeps rising. What this shows now then is clear behavior. The divergence between %K and %D is quite similar to when fell from 450. What interests me in particular is that %K has headed into the oversold range. is very weak right now at support. If heads up again from the support line, IT COULD BE A FANTASTIC BUY IN. A buy signal in stochastics in the oversold region followed by a move above 20 is very . However I will expect a buy signal to be generated above 20 as more sideways movement continues. The early part of the weeks rally was a weak rally as the stayed well below 50. Keep in mind the strong rally's, like the one that headed to 450, happen where heads upward beyond 50.
Watch this chart for a breakdown and continued activity. I am not yet confident to open up a short position until I see a breakdown happen, likewise I will not increase a long position until I see another buy signal. My recommendation would reduce a long position and wait for further data.
Also on a side note I am long term bullish! This is a short term opinion.