Autonation Inc. declined from a high of $22.86 (U.S.) in 2007 to a low of $3.97 in 2008 (A-B) and then had a sharp rise to $21.33 in 2009 (C). The stock then settled into a trading range mostly between $17 and $21 for about one year (shaded area). Autonation had a sharp rise to $25.05 recently (D - a 12-year high) to signal the breakout above resistance (dashed line) and the beginning of a new up-leg. Only a decline below $20-$21 would reverse the positive status.
Point & Figure measurements provide targets of $29 and $34. Higher targets are visible.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com