Tenaris (Friday’s close US$33.83) TS-N declined from US$40.63 to US$20.45 in 2018 (A-B) then settled in a bullish technical formation known as an Inverse Head-and-Shoulders (solid lines). The stock had a breakout above the neckline of this pattern earlier this year (shaded area) and reached a high of US$34.75 in May (C).
Tenaris became extremely overbought at that level and declined toward the 40-week Moving Average (40wMA) and the rising trendline (solid line) then found support near the former level of resistance around US$24 (shaded area). The recent price action signals the resumption of the uptrend toward higher targets (D).
There is good support near US$29-30; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$38 and US$42. The large Inverse Head-and-Shoulders pattern supports higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk