Mullen Group Ltd. has been trading above a rising trendline since 2009 (dashed lines). The price action from 2011 to present shows a horizontal trading range mostly between $18.50 and $23 (dotted lines). A rise above $23.50-$24 would signal the start of a new major up-leg.
Technical indicators including the rising 40-week moving average and the moving average convergence divergence (MACD – lower panel) confirm the bullish status.
Only a decline below about $21 would be negative. Point & Figure measurements provide targets of $28 and $33. The large trading range (dotted 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.
Chart source: www.decisionplus.com
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