KBR Inc. (Friday’s close US$29.26) built a large multiyear base mostly between US$13 and US$21 from 2015 to 2019 (dashed lines). It had a breakout above the top of this range in April-May of this year to signal the start of a new up-leg (A). The stock rose to a high of US$26.84 (B) and is currently in the midst of a minor correction toward its 40-week moving average (40wMA).
There is good support near ±US$22 and only a sustained decline below this level would be negative. A rise above ±US$27 would signal the resumption of the up-trend.
Behaviour indicators including the rising trend-line (solid line) and the rising 40wMA confirm the bullish status.
Point & Figure measurements provide targets of US$29 and US$32. 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