LSI Corp. declined from $9.20 (U.S.) to $5.59 (A-B), rallied to $8.10 (C) and then settled in a trading range mostly between $6.20 and $7.60 (dashed lines). During this time, LSI traded below a falling trend-line for about 1½ years (dotted line).
Recent price action brought the price above the descending trend-line and suggests the stock is on the verge of a breakout from the horizontal trading range (D). A sustained rise above $7.75-$8 would confirm the start of a new up-leg. Only a decline below about $7 would be negative.
Point & Figure measurements provide targets of $9 and $10. Higher targets are visible.
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.Report Typo/Error