Baker Hughes BKR-Q rallied from $9.12 in 2020 to $39.78 in 2022 (A-B) above the rising 40-week Moving Average (40wMA), reversed the trend when it fell below the average (C) but recovered within a few months as it rallied above the average and started having higher lows above a rising trendline (dashed line). However, the stock encountered resistance at the $38-39 level for more than two years (shaded area). The recent rise above this level signalled a breakout and the start of a new uptrend (D).
Behaviour indicators including the rising 40wMA and the rising trendline confirm the bullish status. There is good support near $38-39; only a sustained decline below the 40wMA (currently near $36) would be negative.
Point & Figure measurements provide targets of $49 and $54. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com).
Chart source: www.decisionplus.com
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com