Infinera Corp. (Friday’s close US$9.88) declined from US$25.24 in August, 2015, (not shown) to US$7.23 in November, 2016, (A), settled in a horizontal trading range mostly between US$6 and US$12.50 and then another range mostly between US$3 and US$8.50 (dashed lines). This price action produced a bullish Delayed Ending formation. The recent rise above the top of this pattern (B) suggests a breakout which, a sustained rise above US$12 would confirm, and signal the start of a new up-trend toward higher targets.
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish potential. There is good support near US$9-US$9.50; only a sustained decline below US$8-US$8.50 would be negative.
A rise above US$12-US$12.50 would signal Point & Figure targets of US$13 and US$15. Higher targets are visible.
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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
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