NovaGold Resources Inc. traded in a horizontal trading range mostly between $4.50 and $6.50 for about two years (dashed lines). It had a breakout above this range in 2019 (A), rose to a high of $12.95 (B), pulled back to its 40-week Moving Average (40wMA) and even dipped below it for a couple of days (C) but then quickly resumed the up-trend and reached a new multiyear high (D).
NovaGold is overbought and will likely have a pullback toward support near $13-14 for a better entry point. Only a sustained decline below the 40wMA (currently near ±$11.50) would be negative.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status.
After a correction, Point & Figure measurements provide targets of $20 and $22. Higher targets are visible.
stock
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
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.