FMC Corp. (Friday’s close US$105.47) rallied from US$20.79 in early 2016 to US$87.25 in early 2018 (A-B), then pulled back and began a two-year period of accumulation in the form of a bullish “W” pattern (dashed lines). The ensuing rise above the neckline of this pattern (dotted line – C), followed by an upturn of the 40-week Moving Average (D) signaled the breakout from the “W” formation and the start of a new up leg.
FMC has since pulled back toward its average (E) and now appears ready to resume the up trend. Only a sustained decline below the 40wMA (currently near US$89-90) would be negative.
Point & Figure measurements provide targets of US$109 and US$119. The large “W” pattern (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