Oil rally ready to resume? Maybe...

After the declines in oil there is a completed pattern of correction in play... which suggests a buy would be the way to go. However I'm not 100% confident that the bull rally is ready to continue just yet.

Having said this, it would still be wise to look to enter long in case the market is about to gain some legs. So I have illustrated how this entry would look on this chart.

Personally I would prefer to see another week of sideways action followed by another decline lower in an idealised set up. These preferred scenarios are illustrated in my follow up post which looks at the daily chart for a bigger picture perspective.

Comments are always welcome.