From a 2008 high of $79.86, Plains Exploration & Production Co. declined to $16.91 (A-B), then settled into a horizontal trading range between $16 and $32.50, followed by a higher range between $20 and $40 (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal. The recent rise to $46.71 (C) signalled the breakout from this formation and the start of a new up-leg. Only a decline below $35-$36 would be negative.
Point & Figure measurements provide an initial target of $54. The large Duplex Horizontal (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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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