Avigilon declined from $34.50 to $11.20 (A-B) and then settled into a bullish technical pattern known as an Inverse Head-and-Shoulder (solid lines). The recent rise above the neckline of this formation (dotted line) signalled the breakout and the start of a new up-leg (C). Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. A minor pullback may occur toward ±$19, but only a sustained decline below ±$17 would be negative.
Point & Figure measurements provide targets of $23 and $25. The large Inverse Head-and-Shoulder formation (solid lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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