Magna International Inc. (Friday’s close $73.68) traded above a rising trend-line and above its rising 40-week Moving Average (40wMA) from mid-2016 to mid-2018 (dashed line). It then fell below its average and below the trend-line (A) to signal the start of a new down-leg (dotted line).
The stock found support near ±$60 (shaded area), rose above its average temporarily (B) and then returned toward the previous low, where it found good support (C).
Once again, Magna is trading above its 40wMA (D) as it did last April-May (B). However, this time it is accompanied by a rising 40wMA and it is trading above the falling trend-line.
A sustained rise above $75-$76 would confirm the start of a new up-leg (solid line). Only a decline below $67-$68 would be negative.
A rise above $75-$76 would signal Point & Figure targets of $84 and $89. Potentially higher targets are visible.
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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
Monica Rizk
Ron Meisels