Werner Enterprises (Friday’s close US$46.78) rallied from US$21.54 in April 2017 to US$39.11 in February 2018 (A-B) and then settled in a horizontal trading range mostly between US$27 and US$39 (dashed lines). After a temporary dip below its 40-week Moving Average (40wMA) in March (C), the stock pierced above the top of the trading range to signal a breakout and the start of a new up-leg toward higher targets (D).
The stock recently had a minor correction toward its 40wMA where it found good support (E) and appears to be resuming the up-trend.
Only a sustained decline below the 40wMA (currently near ±US$38) would be negative.
Point & Figure measurements provide targets of US$49 and US$54. The large trading range (dashed lines) supports higher targets.
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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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