Mosaic Co. (Friday’s close US$33.52) declined from US$86.67 in March, 2011, (not shown) to US$22.02 in February, 2016, (A) below its falling 40-week Moving Average (40wMA) and below a falling trend-line (dotted line). It then settled in a large bullish technical pattern known as a “W” formation (dashed lines).
The recent rise above the top of this pattern signalled a breakout, renewed investor interest and the start of a new up-leg (B).
Behaviour indicators including the 40-week Moving Average (40wMA) confirm the bullish status. Mosaic may have a minor pullback toward ±US$32-33, but only a decline below ±US$30 would be negative.
Point & Figure measurements provide targets of US$39 and US$44. The large “W” pattern (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.
Chart source: www.decisionplus.com