Metro (Friday’s close $47.64) rallied from $21.33 in 2014 to $48.19 in 2016 (A-B) and then settled in a large wedge pattern made up of equal lows near ±$38 and lower highs (dashed lines). The recent rise above the top of this formation signalled a breakout and the start of a new up-leg toward higher targets (C).
Metro is somewhat overbought and may have a minor correction toward $45-46; only a sustained decline below $43-44 would be negative.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish potential.
Point & Figure measurements provide targets of $52 and $57. The large wedge pattern (dashed lines) supports 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