Kirby declined from $124.12 to $44.63 (A-B), had a recovery rally to $73.25 (C) and then returned toward the previous low (D). This price action produced the first three moves of a bullish technical pattern known as a "W" formation (dashed lines).
The subsequent rise to $73.40 (E) above the now rising 40-week Moving Average (40wMA) is bullish. However, a sustained rise above $74-75 would signal: a breakout from the "W" pattern, renewed investor interest and the start of a new major up-leg.
Only a decline below $62 to $63 would be negative. A rise above $74 to $75 would signal Point & Figure targets of $84 and $89. Higher targets are visible.
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