Nov NOV-N declined from US$49.07 in 2018 to US$8.00 in 2020 (A-B) and then remained in a trading range mostly between US$8 and US$15 (dashed lines). This “base-building” action occurred below the falling 40-week Moving Average (40wMA) and the falling-trend-line (dotted line).
In December, 2020, Nov rallied above this trading range to signal the end of the downtrend (C) and then settled into another trading range mostly between US$12 and US$18 (dashed lines). The recent rise above US$18 signaled a breakout and the start of an uptrend toward higher targets (D).
The current correction provides a good entry level. There is good support near US$18-19. Only a sustained decline below US$18 would be negative.
Point & Figure measurements provide targets of US$23 and US$26. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
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