Empire (Friday’s close $38.28) has been in an up-trend since 2017 (solid line). On Nov. 4, 2017, ($23.73) we reported the start of a new up-leg and provided targets of $26 and $29. The stock has since rallied to a high of $37.43 to fulfill and exceed our targets (A). Subsequently, Empire started a decline that brought the stock below its 40-week Moving Average (40wMA) and temporarily below the rising-trend-line (B). However, it quickly rose back above this line and then completed a bullish pattern known as an Inverse Head-and-Shoulder formation (solid horizontal lines). The recent move above the neckline of this pattern (dotted line) and above the 40wMA signalled a breakout and the resumption of the up-trend (C). Only a sustained decline below $32-33 would be negative.
Point & Figure measurements provide targets of $41 and $44. 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
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