From the high of $28.17 (U.S.) in 2007 (not shown), Masco Corp. declined to $3.53 (A), rallied to $17.21 (B), declined to $6.89 (C) and then rose to $17.19 recently (D). This price action produced a bullish technical pattern known as a “W” formation (see dashed lines). The rise to $17.19 (D) suggests a potential breakout, which a rise above $17.50-$18 would confirm. Only a sustained decline below about $14 would suggest additional base-building is required.
Point & Figure measurements provide an initial target of $21. The large “W” pattern (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.Report Typo/Error
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