Atco ACO-X-T (Friday’s close $44.09) had a major decline in early-2020 (A-B), followed by a recovery rally and a two-part base formation. The first part consisted of a horizontal trading range mostly between $36 and $43 (dashed lines) and after a minor rise above this range (C) it settled into a very bullish “descending triangle formation” (dotted lines). The recent breakout (D) signalled a change from a base-building pattern to the start of a rising trend. The current correction should provide a good entry level. A rise above $45 would suggest the resumption of the uptrend.
There is good support near $41-42; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $52 and $55. Higher targets are also visible.
Editor’s note: In an earlier version of the chart, the "C" notation was incorrectly placed, and the "D" notation was omitted. The chart has been corrected.
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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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