Russel Metals Inc. declined from $27.75 to $18.90 (A-B), rallied to $27.95 (C) and then traded in a horizontal trading range mostly between $24 and $28 in 2012 (C-D). This price action produced a bullish technical pattern known as a “V-Extended” (solid lines). Recent price action signalled the breakout from this formation and the start of a new up-leg (D). Only a decline below its 40-week moving average (currently at about $26.50) would be negative.
Point & Figure measurements provide targets of $34 and $38. 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.Report Typo/Error