On Dec. 3, 2011 ($39.74 U.S.) we suggested that Carter’s Inc. had a breakout from a base that supported higher targets (dashed lines). Subsequently, the stock rallied to $57.27 for a 44-per-cent appreciation at that time (A). Carter’s then settled in a large trading range between $50 and $57 for most of 2012 (dotted lines). The recent rise to $61.22 (B) confirmed the breakout from this range and suggests higher targets. Current levels provide a good entry point (C). Only a sustained decline below about $55 would be negative.
Point & Figure measurements provide targets of $69 and $79.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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