Louisiana-Pacific Corp. had a sharp rise from $4.41 to $22.55 (A-B) and then traded below a falling trend-line (dashed line) and below its falling 40-week moving average for almost two years. The stock subsequently rallied above this trend-line and above its average in late-2014 and then stayed in a narrow trading range between $15 and $17.50 for almost six months (dotted lines). Bullish sentiment drove the stock above the top of this range recently to signal the breakout and the start of a new up-leg (C). Only a sustained decline below $15.50-$16 would be negative. Point & Figure measurements provide targets of $21 and $23. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. 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.