Denbury Resources Inc. had a sharp decline from $26.03 (U.S.) to $10.20 in 2011 (A-B) followed by a recovery rally to $21.37 (C). It then stayed in a trading range between $14 and $18, and then in a higher range between $16.50 and $19.50 (dotted lines).
A sustained rise above $19-$20 would signal the start of a new up-leg toward our next target of $24. Only a decline below around $18 would suggest a move toward the bottom of the second trading range.
Look for a rise above $19-$20 or decline below around $16 to signal the direction of the next move.
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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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.