Speculative is the operative word here.  The recent activity in PHG might be prelude to a breakout.  And then the gaps might be pattern gaps.  That’s why it’s called speculative, because it’s not certain.  Nonetheless the situation illustrated by the two short tight trendlines often represents a speculative signal.  The break across the trendline with increased volume during the pattern should mean that someone is buying.  The down bars are the natural wave reaction to scalping and profit taking.  A gap or power bar across these lines often represents the early opportunity.  Also speculators make and lose more money than prudent investors, who will wait for a break of the horizontal line.

As can be seen here the gap was indeed a buy signal.  Whether the buy signal is good for the beginning of a trend or just a scalp remains to be seen.  We interpret the breaking of the two lines as two buy signals.  The closing of the gap we don’t think significant.  The stop is 3% under the nearby low.  If the price goes down to get it we will think the closing of the gap was significant.