Carpenter Technology CRS-N declined from $61.49 in 2018 to $13.60 in 2020 (A-B) below the falling 40-week Moving Average (40wMA) and below a falling trendline (dotted line). The stock stayed in a trading range between $15 and $30 in 2020 and then had a recovery rally to the falling trendline in 2021 (C), but could not rise above it.
Carpenter Technology then settled in another range between $27 and $44 for a year-and-a-half, forming the second part of a bullish Duplex Horizontal formation (dashed lines). The recent rise above the top of this pattern and above the falling trendline signaled a breakout and the start of an uptrend toward higher targets (D).
stock
The stock recently pulled back to the 40wMA (E) and now appears ready to resume the uptrend. Only a sustained decline below $40 would be negative
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.