NFI Group Inc. (Friday’s close $31.54) declined from $61.25 in March, 2018, to $28.47 in January, 2019 (A-B), had a minor rally to $39.33 in June, 2019 (C), and then settled in a bullish technical base in the form of an “inverse head-and-shoulders” pattern (solid lines).
A sustained rise above the neckline of this pattern (at $34 – dotted line) would signal a breakout and the start of an uptrend toward higher targets.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish potential. There is good support near $25-$26; only a sustained decline below this level would be negative.
A rise above $34 would signal Point & Figure targets of $39 and $43. The large “inverse head-and-shoulders” pattern (solid 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
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