Last up-date from 48 hours ago which you can see here. We said a cup and handle formation and break out above three dollars was likely other wise we are heading back towards two dollars. The break out did not happen and we are still consolidating between two and three dollars as you can see on the four hour chart below.

Notice how the volume has dried up as the price has moved down while the stochastic lines at the bottom are in very oversold territory. This suggest there is still energy to the upside and we can expect bulls to buy the support at two dollars.

On the other hand large accounts may be inclined to power down and take profits in the weeks to follow, other short term traders may also be inclined to take profits. I think it's important to see two dollars hold. A long consolidation at these levels would be bullish!

What do you think? Are we in for a long period of consolidation?

From the Gulf of Thailand

-Dan "World Travel Pro"

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