Textron Inc. traded below a falling trend-line (dashed line) and below its falling 40-week Moving Average (40wMA) for about a year and-a-half (A-B). In late-2016, it rallied above its average and above the falling trend-line to signal the start of a new up-trend.
After a sharp rise to $50.93 (C), it settled in a horizontal trading range mostly between $45 and $50 for about one year (dotted lines). The recent move to $55.80 (D) signaled a breakout from the trading range, renewed investor interest and the resumption of the long-term up-trend.
Only a sustained decline below $48-49 would be negative.
Point & Figure measurements provide targets of $59 and $64. 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
Monica Rizk
Ron Meisels