Sierra Wireless Inc. (Friday’s close $33.27) traded in a horizontal trading range mostly between $10 and $16, had a breakout from this range, and reached a high of $28.23 in January, 2021 (A). We suggested targets of $29 and $32 on August 13, 2021 ($20.64). Sierra Wireless then completed a second trading range between $16 and $25 and then reached a recent high of $32.43 for a 57-per-cent gain since our previous report (B). The price action from 2019 to early this year produced a bullish technical pattern known as Duplex Horizontal (dashed lines) and the recent breakout from this formation supports higher targets.
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support at $26 to $27; only a sustained decline below $24 to $25 would be negative.
Point & Figure measurements provide targets of $35 and $37. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk