Failure rate of diamond reversal is high although moving averages and other technicals do suggest the more likely move is to the upside. Whilst the failure is common when it does hold the swing to the upside is generally very strong.
reading it together with RSI and slow stoch, there is a good chance crude has hit an important bottom
Watch weekly slow stochastic which crossed this week
Long term bottom maybe in place.
Monthly divergence appeared 3 times 32 years - 1986, 1993, 1998. Each formed the base of a multi month run up.
2015 is fourth time.
Crude maintains upward pressure as weekly MACD crossed
Inverted H&S forming. Break out of downward broadening wedge nears.
Bears trapped yesterday
Stay long - min target 65
Crude goes up when weekly MACD cross
Bounced last week. Next 2 weeks critical to continuation.
Must close above 50 next week. Seasonality favors long as we head into Feb.
Price action next week will confirm
Buy dips. Megaphone to break up.