Texas Industries Inc. declined from $80.35 to $12.58 (A-B), had a recovery rally to $48.72 (C) and then settled in a wide horizontal trading range mostly between $27.50 and $47 (dashed lines). Price action over the past six months has been above the rising 40-week moving average (40wMA). The recent rise above $50 confirmed the breakout and the start of a new major up-leg. Only a decline below $40-$41 would be negative.
Point & Figure measurements provide targets of $54 and $59. The large trading range supports higher targets.
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.
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