During the last five months of 2011, Inmet Mining traded in a bullish technical pattern known as an inverse head-and-shoulder formation (dashed lines). The recent rise to $70.34 (A) above the neckline (dotted line) signalled a breakout above this pattern, and also the start of a new major up-leg toward significantly higher targets. Only a decline below $61-$62 would suggest additional base-building is required before a sustained up-move.
Point & Figure measurements provide targets of $77 and $84. The inverse head-and-shoulder formation (dashed lines) supports significantly 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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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