KBR Inc. declined from $36.70 to $14.00 (A-B), and settled in a horizontal trading range mostly between $16 and $20, followed by another range between $13 and $18 (dashed lines). This price action produced a bullish technical pattern called a Delayed Ending. The recent rise above $18.50-19.00 signaled a breakout from this formation, renewed investor interest and the start of a new up-leg (C). There is good support near ±$17.50, but only a sustained decline below ±$16.00 would be negative.
Point & Figure measurements provide an initial target of $25. The large trading range supports significantly 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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