Following our earlier report (Dec. 14, 2013, $8.12) Savanna Energy Services Corp. completed the right shoulder of a bullish technical pattern known as an inverse head-and-shoulders formation (dashed lines).
Investor activity created a rise to $9.31 (A), which signalled the breakout above the neckline (dotted line) and the start of a new major up-leg. Current levels should provide an ideal entry point (B).
Only a sustained decline below $7.75-$8 would be negative.
Point & Figure measurements provide targets of $9.80 and $11. The large inverse head-and-shoulders formation 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.