Owens Corning rallied from $5.08 (U.S.) to $37.36 (A-B) and then settled in a horizontal trading range mostly between $25 and $38 for about three years (dashed lines). The stock had a major breakout from this range in early 2013 (C), pulled back to support near its 40-week moving average (D) and now appears ready to resume the up-trend (E). A better entry level may occur near $42, but only a decline below $37-$38 would be negative.
Point & Figure measurements provide targets of $49 and $54. The large trading range (dashed 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.