Packaging Corp. (PKG-N, Wednesday’s close US$171.54) declined from US$168.45 to US$110.56 in 2022 (A-B) below a falling trendline (dotted line). By year-end, the stock started a recovery rally and in 2023, settled in a horizontal trading range mostly between US$125 and US$145, followed by a second range between US$144 and US$160 (dashed lines). The stock had a breakout from this two-part range recently, to signal the start of an uptrend toward higher targets (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trendline (solid line) confirm the bullish status. There is good support near US$160; only a sustained decline below ±US$155 would be negative.
Point & Figure measurements provide targets of US$195 and US$210. The two-part base (dashed lines) supports higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
Monica Rizk