From 2002 to 2011, LSI Corp. traded between $2.50 and $12 (not shown). During the last five years the price remained below about $7.75 (dashed line), however, LSI pierced above this level of resistance recently suggesting the start of a new up-move (A). The stock is likely to rise only to the top of the longer-term trading range near about $12, but a sustained rise above this level would signal the breakout from a 10-year base. Only a decline below about $7 would be negative. Point & Figure measurements provide an initial target of $12. The 2002-11 base supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. 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
Infographic: Bullish on LSI