Miller Industries Inc. rallied from $5.25(U.S.) to $21.29 (A-B), declined below its 40-week moving average (40wMA – C) and then settled in a trading range between $14 and $17.50 (dotted lines). The stock then had a decisive rise above this range to signal the start of a new major up-leg (D). Subsequently, it pulled back to its rising 40wMA (E) and now appears ready to resume the up-trend (F). Only a decline below $16.50-$17 would be negative.
Point & Figure measurements provide targets of $22 and $24. The large trading range (dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.