In our previous report (July 31, 2010 – $41.35) we described how Family Dollar Stores Inc. had a breakout from a large, bullish “W” formation (dashed lines) and above the neckline of this pattern (dotted line). Subsequently the stock had a series of rallies and pullbacks mostly above its 40-week moving average and reached a recent high of $60.53 (A) for a 46-per-cent appreciation at that time. Only a decline below $52-$53 would be negative.
Point & Figure measurements provide targets of $69 and $74. The large “W” formation (dashed lines) 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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error