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Parex Resources PXT-T (Friday’s close $27.87) rallied from $12.19 to $26.78 (A-B) and then fell below its 40-week Moving Average (40wMA) to signal the end of the uptrend (C).

For about three years, the stock meandered above and below the 40wMA but remained below a long-term falling trend-line (dashed line).

After a sudden yet brief decline in March 2020 (D), Parex Resources started an uptrend above a rising trend-line (solid line). In October 2021, the stock pierced above the falling trend-line (E), pulled back to support at the rising trend-line (F) and then reached an all-time high recently, confirming a breakout and higher targets (G).

There is good support near $26; only a sustained decline below $24 would be negative.

Point & Figure measurements provide a target of $32. Higher targets are visible.

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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com

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