Uni-Select Inc. (Friday’s close $19.38) declined from $37.03 in 2017 to $11.99 in 2019 (A-B), below its falling 40-week Moving Average (40wMA). It then settled in a trading range mostly between $10 and $13.50, declined in March, 2020 (C), and then stayed in another range mostly between $5.50 and $10. This price action produced a bullish technical pattern known as a Delayed Ending (dashed lines).
The decline from 2017 to the end of 2020 occurred below a falling trend-line (dotted line). Uni-Select rallied above the falling trend-line and above the Delayed Ending formation earlier this year to signal a breakout and the start of a major uptrend (D).
There is good support near $15; only a sustained decline below $14 would be negative.
Point & Figure measurements provide targets of $20 and $22. 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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