Since 2007, MasTec Inc. has traded within a large wedge formation consisting of lower highs and higher lows (dashed lines). The stock rallied to a high of $18.17 (U.S.) recently, to confirm the breakout from this pattern and the start of a new up-leg.
Technical indicators including the rising 40-week moving average and the MACD (lower panel) confirm the bullish status. The current return toward the 40wMA should provide a good entry point (B). Only a decline below $16-$17 would be negative.
Point & Figure measurements provide an initial target of $24. The large wedge formation (dashed lines) supports significantly higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error