On July 11, 2009 ($22.71 U.S.), we described a breakout from a trading range (solid lines) and suggested higher targets. Children’s apparel marketer Carter's Inc. had a series of rallies and pullbacks above a rising trendline (dashed line) since then but remained below about $34 (dotted line) for about a year-and-a-half. The stock rose to $40.16 recently (A – a 77-per-cent appreciation from our previous report) to signal the resumption of the up-trend. Only a decline below about $34 would be negative.
Point & Figure measurements provide targets of $44 and $49.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. Ron Meisels is a contributor to the www.NA-marketletter.com web site. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com