Sierra Wireless Inc. (Friday’s close $20.64) declined from $43.16 in June, 2017, to $19.06 in February, 2018, (A-B); had a recovery rally to $29.38 (C) and then settled in a bullish “V” pattern (dashed lines). In 2020 it moved above its 40-week Moving Average (40wMA) and reached $28.30 (D) to signal the start of a new up-trend.
At that point Sierra had a corrective move toward $16 (E) and now appears to be resuming the up-trend.
Behaviour indicators including the rising 40wMA and the rising trend-line (dashed line) confirm the bullish status. There is good support near $20.50-21.00; only a decline below $19-20 would be negative.
Point & Figure measurements provide targets of $29 and $32. 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. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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