Emerson Electric Co. declined from $64.56 (U.S.) to $39.50 (A-B) and then settled in a large horizontal trading range between $45 and $53 (dashed lines). The recent rise to $58.66 pierced above the top of this range and signalled the start of a new up-leg toward higher targets (D). Emerson Electric is currently in the midst of a correction of the recent rise, but only a decline below the 40-week moving average (40wMA, currently at around $52) would be negative.
Point & Figure measurements provide targets of $64 and $69. 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.