Open Text (Friday’s close $xx.xx) rallied from $42.13 in December, 2018, to $63.43 in February, 2020 (A-B), had a sudden, sharp decline in March, 2020 (C), and then quickly returned toward the previous high (D). The stock ran into resistance near $64 for about one year (shaded area). The rise above this level signalled a breakout and the start of a major uptrend (E). The current correction toward the 40-week Moving Average (40wMA) provides a good entry level (F).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below $61-$62 would be negative.
Point & Figure measurements provide targets of $74 and $79. 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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