Rarely do we see a textbook case unfolding before us. Precision Drilling $PDS has been developing a price chart that looks like a theoretically drawn up chart from a technical analysis textbook.PDS Daily Chart(click to enlarge)Rounded Bottom, Breakout, Bearish Divergence, Pullback, Key Support, RSI, Bullish Engulfing Candle:- The daily chart shows a market that has been bearish since the start of 2017 with price driving down from just above $6.20 to almost $2.30. - Now during the second half of 2017, price action developed a rounded bottom with a key resistance around $3.25.- At the start of 2018, price broke above this resistance as well as clearing all the 200-, 100-, and 50-day simple moving averages (SMAs).- Then, price and the RSI made a bearish divergence, after which, price retreated.- Price came back to a key area around the previously broken rounded bottom resistance at $3.25. - The pullback did reach down a bit, but price held above a key support at $3.00. - Furthermore, the RSI has traveled above 70 and pulled back but is holding above 40. This is a sign of bullish momentum gathering.- Finally, the 2/14 price action formed a bullish ENGULFING candle. - Essentially, the sequence of events has so far been textbook. - Let's see if the technical analysis narrative will follow through. This is the narrative initiated by the 2/14 session bullish engulfing candle. It signals a bullish consolidation first towards $4.00. A break above $4.00 would opens up $5 in the short-term, and $6-$6.10 in the medium-term (through 2018). PDS Weekly Chart(click to enlarge)- The weekly chart shows that in 2017, PDS found support around $2.50, which was the 2016 support. - Perhaps the market is shifting from a bearish mode to a sideways one if not a bullish one. - This sideways market scenario still supports a short to medium-term bullish outlook, though the prevailing bearish mode warns us to monitor that area just under $5.00.