Linear Technology Corp. traded in a large triangle pattern for two years (dotted lines). The stock had a breakout from this formation earlier this year (A), pulled back to its rising 40-week moving average (40wMA) and to the long-term rising trend-line (dashed line - B) and resumed the up-trend as it reached a recent high of $41.39 (U.S.) (C). A minor pullback may occur, but only a decline below about $36 would be negative.
Point & Figure measurements provide targets of $45 and $49. 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.Report Typo/Error