North West Co. Inc. (Friday’s close $35.31) traded in a large, horizontal trading range mostly between $27 and $33 for more than four years (dashed lines). After a brief dip during the 2020 “flash crash” (A), the stock quickly recovered and had a major breakout from this trading range (B). After a minor correction toward the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line – C), North West Co. resumed the uptrend (D).
Behaviour indicators including the rising 40wMA and the rising trend-line confirm the bullish status. There is good support near $34; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $39 and $44. The large trading range (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
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