Approach Resources $AREX has been more or less flat since mid-2016. But in this period of consolidation, it looks like the market is establishing a price bottom.AREX Daily Chart(click to enlarge)Bullish Swing:- The daily chart shows that after respecting the common support at $2.20, AREX made a sharp swing up to tag $4.20.- Price is retreating, but I think this dip is going to be a correction against a newly forming bullish trend. - The weekly chart suggests this price bottom scenario.Price Bottom and $4.30- Looking at the weekly chart, we can see that indeed price has been pretty flat since the second half of 2015.- But we can also see that after establishing a low around $0.60, AREX has been making higher lows, once around $1.40, then multiple times around $2 and $2.20.- It does look like a variation of the cup-and-handle type of price bottom.- Still, a break above $4.30 will be key to establishing a price bottom. Then we can say that 2015-present has been a period of "accumulation", after which we should expect a bullish period. - Also, on the way down within this price bottom, a hold above $3.00 would likely give the market confidence and make a subsequent bullish break above $4.30 more likely. - A break below $2.50 would invalidate my bullish outlook, at which point we will have to re-evaluate whether AREX has formed a price bottom or is simply in a consolidation but with the prevailing bearish bias.AREX Weekly Chart(click to enlarge)