Badger Daylighting (Friday’s close $36.14) rallied from $7.82 in 2012 (not shown) to $43.65 in 2014 (A), reversed the trend and fell below its 40-week Moving Average (40wMA) and then settled in a large triangle pattern (dashed lines).
The recent rise above the top of this formation (B) suggests a breakout and the start of a new major up-leg; a sustained rise above $35-36 would confirm it.
Behaviour indicators including the rising 40wMA confirm the bullish potential. There is good support near ±$30 and only a sustained decline below ±$29 would be negative.
Point & Figure measurements provide targets of $40 and $44. The large triangle pattern (dashed lines) supports potentially higher targets.
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