Skip to main content

First Quantum (Friday’s close $17.55) declined from $23.05 in mid-2018 to $9.45 in early-2019 (A-B), had a recovery rally to $16.63 (C) and then settled in a bullish Inverse Head-and-Shoulders pattern (solid lines). The recent rise above the neckline of this pattern (dotted line) signalled a breakout and the start of a new up-trend (D).

Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. A minor correction toward $14.00-14.50 would provide a better entry point. There is good support near $12-13; only a sustained decline below this level would be negative.

Point & Figure measurements provide a target of $19. The large Inverse Head-and-Shoulders pattern supports higher targets.

stock

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

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error

Editorial code of conduct

Tickers mentioned in this story