ATS Automation Tooling Systems Inc. (Friday’s close $21.98) rallied from $9.50 in November, 2016, to $24.67 to October, 2018, (A-B), reversed the trend as it declined to $13.28 (C) and then stayed in a large trading range mostly between $16.00 and $22.50 (dashed lines).
The recent rise above the top of this range signalled a breakout and the start of a new up-trend (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status. A better entry may occur toward $21.50-22.00; only a sustained decline below $20-21 would be negative.
Point & Figure measurements provide targets of $27 and $29. The large trading range (dashed lines) supports higher targets.
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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
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