EOG Resources declined from $118.89 to $57.15 (A-B) below a falling trend-line (dashed line) and below its falling 40-week Moving Average (40wMA). It rallied above its average and above the falling trend-line recently and settled in a trading range mostly between $78 and $86 (dotted lines).
The subsequent rise above this range (C), signaled renewed investor interest and the start of a new up-trend.
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the positive status. There is good support near $86-87, but only a decline below ±$80 would be negative.
Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc., and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.