FirstEnergy Corp. declined from $84 (U.S.) to $35.63 (A-B), rallied to $47.77 (C), settled in a trading range between $34 and $40 and then in another between $40 and $46 (dashed lines). The price action in 2010-11 produced a bullish technical pattern known as a Duplex Horizontal. The recent rise to $49.46 (D) signalled a breakout from this formation and the start of a new up-leg. Some weakness may occur toward about $46, but only a decline below $44-$45 would be negative. Point & Figure measurements provide targets of $54 and $59. The large base (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.
Chart source: www.decisionplus.com
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