Trading on 4 Jan, page-193

The bearish engulfing candle of the 30th and the bearish hammer down on the 31st set this up for a continuation of that trend today. This opened up the price targets of $1.30-$1.50 to the downside. So far this has not played out. In fact today's activity is very bullish.

The next few trading sessions are important. This may be a pause prior to a continuation of a downward trend or a reversal and continuation of upwards momentum.

After such bullish runs like this I have often seen flag or pennant formations form on the charts which are often preludes to further bullish runs.

So we are looking for higher higher highs and higher lows or lower highs and higher lows for a continuation of a bullish movement. A break of $1.70 will obviously open up the $1.50 target.