Church & Dwight (Friday’s close US$60.31) rallied from $31.92 in 2014 (A) to $53.68 in 2016 (B) and then settled in a wide horizontal trading range mostly between $43 and $54 from mid-2016 to mid-2018 (dashed lines).
The recent rise above the top of this formation signaled a breakout, renewed investor interest and the start of a new up-leg (C).
Behaviour indicators including the 40-week Moving Average (40wMA) confirm the bullish status. Church & Dwight is currently in the midst of a minor correction for a better entry point, but only a decline below $51-52 would be negative.
Point & Figure measurements provide a target of $64. The large trading range (dashed lines) supports higher targets.
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