Empire Co. Ltd. (Friday’s close $38.83) has been in a long-term up-trend since 2017 (dashed line). We recommended the stock in November, 2017 ($23.73), and recently on Sept. 25, 2020 ($38.28), where we identified a bullish Inverse Head-and-Shoulder pattern (solid lines).
Following our report, Empire rose to a high of $40.87 (A), pulled back to the 40-week Moving Average (40wMA – B) and now appears to be resuming the up-trend (C).
Behaviour indicators including the rising 40wMA and the rising trend-line (dashed line) confirm the bullish status. There is good support at $35-$36; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $44 and $47. Higher targets are visible.
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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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