Cubic Corp. (Friday’s close US$72.15) stayed in a trading range mostly between US$38 and US$55 from 2011 (not shown) to 2017 (dashed lines). The stock started a breakout from this large base at the tail end of 2017 (A) and rose to a high of US$77.25 in mid-2018 (B). It then pulled back and found support at ±US$52 (C – near the top of the previous trading range), and recently resumed the up-trend (D).
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status. There is good support near ±US$66 and only a sustained decline below the 40wMA (currently near US$61-62) would be negative.
Point & Figure measurements provide targets of US$79 and US$84. 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