Take profits into further rand strength. The US dollar/rand is now reaching its minimum target from a large broadening formation (lines 1 and 2) breakdown in September 2010. That target is at 6,58 and is measured as the height of pattern 1-2 projected down. Over the final quarter of 2010 the rand traded in a smaller broadening formation (lines 3 and 4) and a breakdown in December then set up a target of 6,51. There’s a good chance of that target also being reached. Note: The stochastic oscillator (on top) is clearly oversold for the US dollar. However, any rand weakness over the short term will be temporary until the 6,51 target is reached. Start locking in partial profits on your rand longs from 6,58 all the way down to 6,51. Thereafter, look for the rand to weaken again to the 7,20 level.