From the high of $24.32, Tyson Foods Inc. declined to $4.40 (A-B), rallied to $20.56 in April, 2010 (C), and then settled in a trading range between $15 and $20 (C-D). This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The rise to $21.06 (D) signalled the breakout from this bullish formation toward higher targets, and the recent pullback (E) should provide a good entry point. Only a sustained decline below about $18.50 would be negative.
Point & Figure measurements provide targets of $24 and $27. 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 web site. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error