Following our previous report on Nov. 21, 2009 ($59.94 U.S.), Sherwin-Williams Co. rallied above the neckline (dotted line) of a bullish technical pattern - a "W formation" (dashed lines). The stock reached a high of $80.53, for a 34-per-cent appreciation at that time (A). Subsequently it sold off with the market last May but found support at its rising 40-week moving average (B). Recent price action suggests the stock is ready to resume the uptrend (C).
Only a decline below $67-$68 would reverse the current long-term upside potential.
Point & Figure measurements provide targets of $89 and $99. Higher targets are visible.
Ron Meisels is a contributor to the www.NA-marketletter.com website. 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.
Chart source: www.decisionplus.com