CNX Resources Corp. CNX-N (Friday’s close US$18.31) declined from US$18.37 in July, 2018, to US$4.26 in March, 2020 (A-B), had a recovery rally to US$14.18 in April (C) and then settled into two horizontal trading ranges: one between US$8 and US$12, followed by another mostly between US$11 and US$16 (dashed lines).
The recent rise above the second range signalled a breakout and the start of an uptrend toward higher targets (D). Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status.
A minor correction toward US$16.50-$17 would provide a good entry level. Only a sustained decline below US$14.50-$15 would be negative.
Point & Figure measurements provide a target of US$21. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
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