Lions Gate Entertainment Corp. was in a long-term up-trend for about two years, above a rising trend-line (dotted line) and its 40-week moving average (40wMA).
The stock violated this up-trend and its average in late-2013 (A) and then settled in a large triangle formation (dashed lines).
The recent rise above the top of this pattern signalled renewed investor interest and the resumption of the up-trend (B).
The stock is somewhat overbought and may offer a better entry toward $34-$35 (U.S.). Only a sustained decline below $32.50 would be negative. Point & Figure measurements provide targets of $41 and $44. 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: http://www.decisionplus.com/.