From the high of $65.23 (U.S.) in 2007 (not shown), Western Refining Inc. declined to $4.50 (A) then rallied to $16.30 (B). Subsequently, the stock settled in a horizontal trading range between $4 and $6 (first dashed lines) and then rallied and stayed in another trading range between $11.50 and $21.50 (second dashed lines). This produced a bullish technical pattern known as a duplex horizontal. Recent price action signalled the breakout (C). Only a decline below about $18 would be negative. Point & Figure measurements provide targets of $29 and $34. The large duplex horizontal formation (dashed lines) 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.
Chart source: www.decisionplus.com
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