Rowan Cos. Inc. rallied from $10.28 (U.S.) in 2009 to $44.83 in 2011 (A-B) and then settled in a large wedge formation made up of lower highs and even lows (dotted lines). The recent rise to $38.45 signaled the breakout and the start of a new up-leg from this large and very bullish pattern. Current prices should provide a good entry point and only a decline below the 40-week moving average (40wMA, currently near $35) would be negative.
Point & Figure measurements provide targets of $44 and $49. The large triangle formation (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.