Worthington Industries Inc. had a sharp decline from $45.39 (U.S.) to $24.02 in about seven months (A-B). The stock then settled in a large horizontal trading range mostly between $23 and $32 (dotted lines). The recent rise above the top of this range confirms renewed investor interest and the start of a new up-leg (C). A better entry may occur toward $33, but only a decline below $30 would be negative. Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. Point & Figure measurements provide an initial target of $39. The large trading range (dotted lines) supports significantly higher targets.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.