BorgWarner (Friday’s close US$46.68) declined from US$58.22 to US$32.47 in 2018 (A-B) and then settled in a horizontal trading range mostly between US$31 and US$46 (dashed lines). During the “flash crash” in March, 2020, the stock dipped temporarily below this range (C) then quickly returned within the trading range. The recent rise above the top of this range signaled a breakout and the start of a new up-trend toward higher targets (D).
Behaviour indicators including the 40wMA and the rising trend-line (solid line) confirm the bullish status. There is good support near US$41-US$42; only a sustained decline below US$40-US$41 would be negative.
Point & Figure measurements provide targets of US$54 and US$59. 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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