In our most recent report (May 25, 2013 - $19.63 (U.S.)), we stated that Manitowoc Co. had a breakout (A) above the neckline (dashed line) of a bullish technical pattern known as a “W” formation (solid lines) and that it had higher targets. Following our report, the stock stayed in a trading range between $17 and $21 (dotted lines) and then pierced above it to signal the resumption of the up-trend (B). Currently over-bought, a better entry price may occur near $21.50-$22, but only a decline below about $20 would be negative.
Point & Figure measurements provide a target $29. The “W” formation (solid 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.