Weyerhaeuser had a sharp decline from $37.04 to $26.73 (A-B) and then remained below ±$33 for almost two years (dashed line). Despite the series of higher lows during the past year (solid line), the stock remained below resistance at ±$33.
The recent rise above this level (C) signalled a breakout, renewed investor interest and confirmed the start of a new major up-trend.
Behaviour indicators including the rising 40-week moving average (40wMA) confirm the positive status. Only a decline below ±$31 would be negative.
Point & Figure measurements provide targets of $38 and $42. Higher targets are clearly visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). They may hold shares in companies profiled.
Chart source: www.decisionplus.com