In our previous report on Cascade (June 6 – $14.13) we identified a breakout from a large, bullish V-Extended pattern (dashed lines) and provided targets of $15.00 and $16.50.
Following our report, Cascade (Friday’s close $14.96) (CAS-T) rallied to $16.18 (A), had a minor correction toward its rising 40-week Moving Average (40wMA – B) and resumed the up-trend reaching a recent high of $17.62 to fulfill and exceed our targets (C). The stock is currently in the midst of another minor correction to provide another good entry point.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. There is good support at $13.75-$14.00; only a sustained decline below ±$13.50 would be negative.
Point & Figure measurements provide targets of $19 and $21. Higher targets are visible.
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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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Monica Rizk
Ron Meisels