Having initially thought we were in the 2nd, it appears I was wrong as this current rally now has an impulsive feel to it.
As you can see there appears to be a patter in play. It will be key to see the market react off the upper bound of this diagonal and reverse lower as illustrated by the red arrows.
There are 2 possible plays -
1) Short Oil on the correction but do not expect it to get below $35.
2) Once the correction plays out, reverse the position, conservative stops placed below $35, with a view of riding a strong bull market over the next several months.
There might be a slight "overthrow" above the upper channel before a quick reversal back down. Keep an eye out for this