Since 2011 (not shown), Telephone and Data Systems Inc. (Friday’s close US$36.73) stayed in a large horizontal trading range, mostly between US$22 and US$32 (dashed lines).
The recent rise to US$36.52 signalled a breakout, renewed investor interest and the start of a new up-leg (A).
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line confirm the bullish status. The stock recently had a minor correction (B) and now appears ready to resume the up-trend. Only a decline below ±US$30 would be negative.
Point & Figure measurements provide targets of US$39 and US$43. The large trading range (dashed lines) supports significantly higher targets.
rb-gi-meisels-0112
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc.. And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: decisionplus.com.
Monica Rizk
Ron Meisels