Northland Power (Friday’s close $29.51) traded in a large horizontal trading range mostly between $21 and $25 for about three years (dashed lines). The stock pierced the top of the trading range in 2019 and reached a high of $33.16 (A). It became extremely overbought at this time and pulled back temporarily below its 40-week Moving Average (40wMA – B) but then quickly resumed the up-trend (C).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below $24-25 would be negative.
Point & Figure measurements provide targets of $36 and $39. 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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