Sherwin-Williams Co. sold off from $73.96 in 2007 (A), and settled into a large, bullish technical pattern known as a "W" formation (see dotted lines). During this phase, the stock remained below a long-term descending trend line (see dashed line). Sherwin-Williams rallied above this line recently, to signal the end of the downtrend and the start of a new major up-leg toward higher targets (B). The bullish "W" formation supports significantly higher targets. Only a decline below $54-$55 would reverse the positive status of this stock.
Point & Figure measurements provide targets of $69 and $79 (15-per-cent and 32-per-cent appreciation potentials from current levels). The large "W" formation (see dotted lines) supports significantly higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
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