In our previous publication (May 29, 2021 – US$41.44) we identified a bullish, technical pattern known as a Duplex Horizontal (dashed lines) and suggested that the rise above the second range signalled a major breakout and the start of a new major up-trend (A). We also suggested that the stock was in the midst of a minor correction and should find good support near US$35-36.
Axcelis Technologies (Friday’s close US$47.18) completed the correction (B) and resumed the up-trend to a recent high of US$52.80 (C). At this point, the stock became overbought and was far above its 40-week Moving Average (40wMA). It is currently in the midst of a minor correction; there is good support near US$42. Only a sustained decline US$40-US$41 would be negative.
Point & Figure measurements provide targets of US$58 and US$64. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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