DIRTT Environmental (Friday’s close $7.71) had a sharp rise from $3.38 to $9.19 in the first half of 2015 (A-B) and then traded in a horizontal trading range mostly between $4.50 and $7.50 for the subsequent three years (dashed lines). The ensuing rise above $7.50 signalled a breakout from this range (C) and the start of a new up-trend (solid line).
The stock is currently in the midst of a minor correction, but only a sustained decline below ±$7.00 would be negative.
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status.
Point & Figure measurements provide targets of $11 and $12. The large trading range (dashed lines) supports higher targets.
Chart source: decisionplus.com