From the high of $52 in July 2007, Rogers had a series of selloffs and rallies below a falling long-term trendline (dotted line). The stock then settled into a horizontal area of accumulation mostly between $27 and $34 (dotted lines). During this "base building" phase, the 40-week moving average (40wMA) started to flatten and the price started to rise above this average (C).
Recent price action has been very bullish: The rise above the falling parallel channel and above the now rising 40-week moving average to $35 signalled the start of a new major up-leg toward higher targets (D). Only a decline below the 40wMA (currently at around $32) would reverse the positive status of this stock.
Point & Figure measurements provide an initial target of $48. Higher targets are visible.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Source: WWW.DECISIONPLUS.CA
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