Covanta Holding Corp. had a sharp decline from $30.37 (U.S.) to $12.47 (A-B), a recovery rally to $19.69 (C) and then settled in a large horizontal trading range mostly between $13.50 and $17.50 (dashed lines). The recent rise to $19.34 pierced above the top of this area of accumulation to signal the breakout and the start of a new major up-leg. Only a decline below about $17 would be negative.
Point & Figure measurements provide targets of $21 and $24. The large trading range (dashed lines) supports higher targets.
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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