World Fuel Services Corp. traded in a horizontal trading range between $34 and $45 for almost two years (dashed lines). Earlier this year, the stock rallied to the top of the range and above its rising 40-week moving average (40wMA). Recent activity above $45 indicates a bullish sentiment and signals the start of a new up-leg (A).
Technical indicators including the rising 40wMA and the MACD (lower panel) confirm the positive status. Only a decline below $42-$43 would be negative.
Point & Figure measurements provide targets of $54 and $59. The large trading range (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 thewww.NA-marketletter.comwebsite and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.