In our previous report (Nov. 21, 2020 – $17.55) we identified a bullish Inverse Head-and-Shoulders pattern (solid lines) and provided a target of $19. Following our publication, the stock rose to $26.72 (A), had a minor correction toward the rising trend-line (solid line – B) and then resumed the up-trend, reaching a recent high of $31.57 for an 80-per-cent appreciation at that time (C).
First Quantum has since pulled back toward the rising trend-line (D). There is good support at $22-23. A decline below this level would suggest a return to the 40wMA (currently near ±$19) where it will likely spend a considerable period of time building enough momentum to resume the up-trend.
Point & Figure measurements provide targets of $34 and $37. 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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