BorgWarner had a sharp decline from $63.30 to $37.33 (A-B) and then settled in a bullish technical pattern known as an Inverse Head-and-Shoulder (solid lines). The recent rise above the neckline of this pattern (C – dashed line) signalled a breakout and suggests renewed investor interest and the start of a new up-trend. The rising 40-week Moving Average (40wMA) confirms the positive status. There is good support at ±$44, but only a decline below ±$42 would be negative. Point & Figure measurements provide targets of $49, $54 and $59. The large Inverse Head-and-Shoulder pattern (solid lines) supports higher targets.
Chart source: www.decisionplus.com