A basic review of the chart for oil futures (CL) suggests that crude is about to take off. Whether the next move from here is up or down, providing a critical level holds in one case or is broken in another, it will send a strong technical buy signal. (Click to enlarge) The pattern concerned is basically a flat period followed by a dip, a recovery to the same level and then another sideways move. It is known as a teacup and is similar to an inverse head and shoulders formation, but without the pronounced shoulders formed by two dips during the periods of sideways action. Still, the theory is the same as to why it presages a run up. It indicates a failed move down that should discourage any aggressive selling from here. It is not, however, confirmed as a buy signal until one of two things happens. […]