Carpenter Technology Corp. (Friday’s close US$56.08) declined from US$67 to US$23.99 (A-B) below a falling trend-line (dotted line) and below its falling 40-week Moving Average (40wMA). It reversed the trend in mid-2016, rallied above its average, traded in a wide horizontal trading range mostly between US$34 and US$44, followed by another range between US$44 and US$54 (dashed lines).
The recent rise above this range (C) signalled the breakout and the start of a new up-leg toward higher targets.
Carpenter Technology has since pulled back to support at its 40wMA (D) and now appears ready to resume the up-trend. Only a sustained decline below ±$50 would be negative.
Point & Figure measurements provide targets of US$64 and US$69. 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
Monica Rizk
Ron Meisels