Ballard Power Systems (Friday’s close $24.69) built a multiyear base mostly between $7 and $4 from about 2005 (not shown) to 2019 (dashed lines). The stock broke out from this range in late-2019 and reached a recent high of $29.20 (A). At this point, the stock became extremely overbought and was far above its rising 40-week Moving Average (40wMA). A much-needed pullback ensued and found support near ±$18 to date (shaded area).
There is additional strong support at the intersection of the rising trend-line (solid line) and the 40wMA (currently near ±$17). Only a sustained decline below this level would be negative.
A sustained move above $23.00-23.50 would suggest the resumption of the up-trend toward higher targets.
Point & Figure measurements provide targets of $29 and $31. Significantly 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
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