Knowles (Friday’s close $19.66) declined from $33.82 in August 2014 (not shown) to $9.68 in February 2016 (A) and then settled in a large multi-year trading range mostly between $12.00 and $20.00 (dashed lines). A sustained rise above $20.50-21.00 would signal a breakout from this range and the start of a new major up-leg. A base of this size would potentially support significantly higher targets (“the bigger the base, the higher the space”).
Only a sustained decline below $16-17 would be negative.
A rise above $20.50-21.00 would signal Point & Figure targets of $23 and $26. The large trading range (dashed lines) supports potentially 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