USO: Just Consolidation or Reversal?

After USO taking a large hit at the end of last year the downward momentum has slowed and it has even put in a higher high recently for the first time in quite a while. The sustained price action above the 50 SMA gives me more faith that this may be the bottom for USO. I will be watching in the weeks to follow to see if a trade that meets my parameters will setup. I could see USO either pulling back and forming a head and shoulders pattern with a skewed neckline (as I have outlined) or continuing to channel for sometime. Either one will set up profitable patterns so I will be waiting to see what forms in the days and weeks to come.

Feel free to comment and share you opinions/ideas/criticisms.