Energy Fuels EFR-T (Friday’s close $10.56) declined from $13.03 in 2014 to $1.74 in 2016 (not shown) and settled in a multiyear bullish technical pattern known as a Double-Bottom (dashed lines). It had a breakout from this formation (heavy line), reached a high of $9.75 in March of this year (A), but then started a mild pull-back.
The correction culminated in early October at the 40-week Moving Average (40wMA – B) and from then EFR rallied to a recent high of $14.33 (C). It became overbought at this time and has since pulled back toward the 40wMA (D); a sustained rise above $11 would suggest the resumption of the up-trend. Only a sustained decline below $8.50-9.00 would be negative.
Point & Figure measurements provide targets of $14.50 and $15.50. The multiyear Double-Bottom formation (dashed lines) supports higher targets.
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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