Ciena Corp. (Friday’s close $32.02) stayed within a multiyear triangle pattern, made up of equal highs near ±$28 and higher lows since 2011 (partially shown – dashed lines). The recent rise above the top of this pattern (A) signaled a breakout, renewed investor interest and the start of a new up-leg.
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status.
The stock had a minor correction recently to provide a better entry point (B) and now it appears ready to resume the up-trend. A rise above ±$32 would signal the resumption of the up-trend. Only a sustained decline below $26-27 would be negative.
Point & Figure measurements provide targets of $34 and $39. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com