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Southwestern Energy SWN-N (Friday’s close US$7.06) declined from US$15.59 in September, 2016, (not shown) to US$3.42 in February, 2018, (A) and then settled in a bullish, multiyear technical pattern known as an Inverse Head-and-Shoulders (solid lines). The recent rise above the neckline of this formation (shaded area) signalled a breakout and brought the stock to US$9.87 (B). At that point the stock became quite extended (far above its 40wMA) and it pulled back to find support toward its average, currently near US$6 (C). The former level of resistance at the neckline has become support. Only a sustained decline below his level would be negative.

Behaviour indicators including the rising 40wMA confirm the bullish status. A sustained rise above ±US$7.50 would suggest the resumption of the uptrend.

Point & Figure measurements provide targets of US$10 and US$11. Higher targets are visible.


Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication ( Chart source:

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