Secure Energy Services Inc. declined from $28.05 to $5.33 (A-B) below a falling trend-line (dotted line) and below its falling 40-week moving average (40wMA). It rallied above these in early 2016 (C) and then traded between $7.75 and $10.
This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The subsequent rise to $12.04 (D) signalled the breakout from this formation. The stock is currently in the midst of a minor correction toward its 40wMA, but only a decline below ±$9.00 would be negative. A rise above $10.50 to 11.00 would signal the resumption of the up-trend. Point & Figure measurements provide targets of $12.00 and $13.50. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.comReport Typo/Error