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Macy’s (Friday’s close US$26.59) declined from US$41.95 in August, 2018 to US$14.20 in August, 2019 (A-B) and then settled in a bullish technical formation known as an Inverse Head-and-Shoulders (solid lines).

The recent price action above the neckline at US$22-23 (shaded area) signaled a breakout to confirm the start of a new up-trend toward higher targets (C).

Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near US$20; only a sustained decline below the 40wMA (currently near US$18) would be negative.

Point & Figure measurements provide an initial target of US$29. The large Inverse Head-and-Shoulders pattern (solid lines) supports higher targets.


Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. ( And he tweets at @Ronsbriefs. They may hold shares in companies profiled.

Chart source:

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