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Bullish on Allegheny Technologies

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Allegheny Technologies Inc. declined from $46.32 to $7.08 (A-B) below its falling 40-week Moving Average (40wMA) then rallied and stayed in a trading range mostly between $11.50 and $18.50 for most of 2016. This price action produced a bullish technical pattern known as a V-Extended (dotted lines). The stock rallied above the top of this pattern in early 2017 (C), pulled back to support (D), and now appears ready to begin a new up-trend (E). Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the positive status. Only a decline below $19-20 would be negative. Point & Figure measurements provide targets of $29 and $32. Higher targets are visible.

Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.Chart source: www.decisionplus.com

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