FirstEnergy Corp. (Friday’s close HS$42.49) rallied from US$29.98 in August, 2014, to US$41.68 in January, 2015, (A-B) and then settled in a multiyear bullish technical pattern known as a Triple Bottom (dashed lines). The recent rise above the neckline (dotted line) signalled the breakout from this formation and the start of a new up-trend (C).
Behaviour indicators including the 40-week Moving Average (40wMA) confirm the bullish status. There is good support near ±US$39; only a decline below ±US$38 would be negative.
Point & Figure measurements provide targets of US$44 and US$49. The large Triple Bottom formation (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.
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Chart source: www.decisionplus.com