Deluxe DLX-N (yesterday’s close $25.84) declined steeply from $48.38 in May 2021 to $13.61 in May 2023, trading below both a declining trendline (dotted line) and its falling 40-week moving average (40wMA). The stock then stabilized within a broad horizontal range, mostly between $14.00 and $24.50 (dashed lines).
Earlier this year, Deluxe broke out decisively from this range and reached a recent high of $32.07 (C). Deluxe was overbought at that time and trading far above its average; the stock subsequently pulled back toward its 40wMA where it appears to have found support (D). The recent price action suggests the stock is ready to resume the long-term uptrend. Only a sustained decline below the 40wMA (currently near $23) would be negative.
Point & Figure measurements provide targets of $34 and $37. The broad trading range (dashed lines) supports higher targets.
stock
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com