On June 16, 2018 (US$14.78), we identified a breakout from a large, multiyear trading range (dashed lines) and provided targets of US$16 and US$18. Following our report, PAR Technology Corp. (Friday’s close US$22.14) rallied to a high of US$26.39 to fulfill and exceed our targets (A).
The stock became overbought at that time and is currently in the midst of a pullback toward its rising 40-week Moving Average (40wMA) and the rising trend-line (solid line – B). There is good support near US$15.50-US$16.00 and only a sustained decline below this level would be negative.
A rise above US$20.50-US$21.00 would suggest the stock is ready to resume the up-trend toward Point & Figure targets of US$27 and US$29. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: decisionplus.com