Sturm, Ruger & Co. (Friday’s close $76.26) stayed in a descending parallel channel for four years (dashed lines). The stock had a major breakout from this channel in 2020 as it rose to a high of US$85.55 (A). The subsequent correction toward the 40-week Moving Average (40wMA) found support near US$60 (B). RGR appears ready to resume the up-trend; a rise above US$75-US$80 would confirm it and signal higher targets.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below ±US$68 would be negative.
Point & Figure measurements provide targets of US$89 and US$99. 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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