We reported the start of an uptrend and higher targets of $29 and $33 on March 5, 2021 ($25.01). Five months later, Russel Metals (RUS-T) (Wednesday’s close $38.22) reached a high of $37.57 for a 50% gain (A). Subsequently, the stock started a decline below a falling trendline for about six months (dotted line), then found good support near $25 (shaded area).
Russel Metals rallied above the 40-week Moving Average (40wMA) earlier this year and pierced above the falling trendline (B). After a minor correction toward the 40wMA in April near $32 (C), the stock resumed the uptrend to a higher high (D).
Behaviour indicators including the rising 40wMA and the rising trendline (solid line) confirm the bullish status. Russel Metals had a minor correction toward $37 recently to provide a good entry level. Only a sustained decline below the 40wMA (currently near $35) would be negative.
stock
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). 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.