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Southwestern Energy Corp. declined from $49.25 (U.S.) to $25.63 (A-B) below a falling trend-line for about one year (dotted line). Subsequently, the stock stayed in a horizontal trading range between $30 and $31 and then between $35 and $40 (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal (dashed lines). The recent move to $43.51 signalled the breakout from this formation and the start of a new up-leg (C). Only a sustained decline below about $38 would be negative.

Point & Figure measurements provide targets of $49 and $54. The large Duplex Horizontal formation supports higher targets.

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.

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