Emerson Electric EMR-N had a sharp rise from US$37.75 in March 2020 to US$105.99 in September 2021 (A-B). The stock then settled in a wide horizontal trading range mostly between US$75 and US$100 (dashed lines). The subsequent rise above the top of this range signaled a breakout and the start of a new uptrend (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. Emerson Electric is currently in the midst of a minor correction; there is good support near US$100-105. Only a sustained decline below US$99-100 would be negative.
Point & Figure measurements provide targets of US$120 and US$130. The large trading range (dashed lines) supports significantly higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
Monica Rizk