Myers Industries declined from $24.74 to $12.59 (A-B) and then settled in a bullish technical pattern known as a “W” formation (dashed lines). The stock had a breakout above the neckline of this pattern recently (dotted line) and reached a recent high of $19.45 (C). This price action signaled renewed investor interest and the start of a new major up-leg.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the positive status. Myers may have a minor correction toward ±$17.00, but only a sustained decline below $15.50-16.00 would be negative.
Point & Figure measurements provide an initial target of $22. Higher targets are visible.
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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