Federal Signal Corp. stayed in a horizontal trading range mostly between $4 (U.S.) and $8 for several years (dashed lines). The stock had a breakout from this range in early-2013 (A), reached $15.89 (B), and then settled in another trading range between $12 and $16 (dotted lines). The recent rise above the top of this range signalled renewed investor interest and the resumption of the long-term up-trend (C). Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. Only a decline below $15 would be negative. Point & Figure measurements provide targets of $19 and $22. Higher targets are visible.
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.
