From the high of $66.38, Sempra Energy declined to $34.29 (A-B), had a recovery rally to $57.18 (C) and then settled in a trading range mostly between $45 and $56 (dashed lines). Recent price action (D) suggests a breakout from this trading range; a sustained rise above $57-$58 would confirm the breakout. Only a decline below about $51 would be negative. A rise above $57-$58 would signal Point & Figure targets of $64 and $69 (15- and 25-per-cent appreciation potentials from current levels). 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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error