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Teradyne Inc. rallied from $2.80 (U.S.) in 2008 to $19.19 in 2011 (A-B), declined to $10.37 (C) and then settled in a large triangle pattern (dashed lines). The recent rise to $18.57 (D) signalled the breakout from the bullish formation and the start of a new major up-leg.
Technical indicators including the rising 40-week moving average (40wMA) and the moving average convergence/divergence (MACD - lower panel) confirm the bullish status. Teradyne is somewhat overbought but only a decline below the 40wMA (currently at around $16) would be negative.
Point & Figure measurements provide targets of $22 and $24. 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.
Monica Rizk
Ron Meisels