Suggest Treatment For Itching Rashes On Leg

I have what appears to be a rash on my leg just above the knee very near a set of varicose veins. It gets a little red, itches, then leaves a scar under the skin, stops itching, then spreads a little at a time. Naftin hasn,t worked. it looks like it's moving up my leg in kind of a line and is localized in that area only. Any thoughts? I,M 60 YRS OLD, A WELL MAINTAINED DIABETIC AND COULD STAND TO LOSE ABOUT 30 LBS. I,M TAKING ACTOS+METFORMIN (800/15) WITH NO MEDICAL PROBLEMS.