The Manitowoc Co. had a sharp decline from $23.23 (U.S.) to $5.76 (A-B) and then settled into a bullish technical pattern known as a “W” formation (dashed lines). The rise to $21.35 (C) confirmed the breakout from this formation. The stock has since pulled back to support near its 40-week moving average (D) and now appears ready to resume the up-trend (E). Only a decline below around $18 would be negative.
Point & Figure measurements provide targets of $22 and $24 (12-per-cent and 22-per-cent appreciation potentials from current levels). The large “W” formation (dashed lines) supports 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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.