It looks like we have formed a potential inverse head and shoulder pattern right at the key line of $60 which has been respected in the past. Could this be the catalyst to take this higher? Maybe. A definite negative in taking a trade to the upside is the potential lower high that could be forming on the weekly right at the 0.382 - 0.5 FIB retracement. If this is the case, what I would be looking for to get in long would be a double bottom at the previous weekly lows.
In order for me to take this long, I would have to see further deceleration around this area on the daily chart and an intra-day trend change (price starts making higher highs/higher lows) to prove to me that this pattern is being respected and the weekly lower high is not going to occur.
In order for me to take this long, I would have to see further deceleration around this area on the daily chart and an intra-day trend change (price starts making higher highs/higher lows) to prove to me that this pattern is being respected and the weekly lower high is not going to occur.