National Oilwell Varco Inc. rallied from $32.18 to $86.71 (U.S.) (A-B) then reversed the up-trend as it violated its 40-week moving average (40wMA) and declined to $47.97 (C). Subsequently, the stock rallied and stayed in a trading range between $63 and $87 (dashed lines) and then in a narrower range between $64 and $74 thereafter (dotted lines). Recent price action confirms the breakout from this range (D). A better entry level may occur near about $75, but only a decline below $71-$72 would be negative.
Point & Figure measurements provide an initial target of $89. Higher targets are visible.
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.
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