In the 15 minute chart we can see a very bullish pattern forming – an inverse head and shoulders. If it is confirmed (breaking ~$81) we will see a quick price movement on heavy volume up to the $100 range.
The inverse head and shoulders is a bullish pattern that indicates a trend reversal from the previous bearish sentiment. It consists of a neckline indicating the upper portion of the range, two shoulders, and a head between them. The left shoulder in the above graph is fully formed occurring around the mid 70′s, and consisted of moderate volume. The head occurred in the mid 50′s with fairly heavy volume, and the right shoulder is only half formed currently with with light volume. To confirm this, we would expect there to be light volume through the top of the neckline, and a breakout with heavy volume to ~$100 range. Re-testing the neckline (a pull back to ~$81) during the breakout before the full move is completed would not be unexpected.
This pattern is further reinforced by the double bottom that occurred over the last few days. We can see it below in the 4hour chart:
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