Knowles Corp. (Friday’s close US$xx.xx) declined from US$33.82 in August, 2014, (not shown) to US$9.68 in February, 2016, (A) and then settled in a large multiyear trading range mostly between US$12 and US$20 (dashed lines). A sustained rise above US$20.50-US$21 would signal a breakout from this range and the start of a new major up-leg. A base of this size would potentially support significantly higher targets (“the bigger the base, the higher the space”).
Only a sustained decline below US$16-US$17 would be negative.
A rise above US$20.50-US$21 would signal Point & Figure targets of US$23 and US$26. The large trading range (dashed lines) supports potentially higher targets.
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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