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Mullen Group (MTL-T, Monday’s close $17.25) rallied from $3.85 in 2020 to $14.48 in 2021 (A-B), slipped below its 40-week Moving Average (40wMA - C), and then entered a prolonged consolidation phase, trading largely within a horizontal range between $11 and $16 for approximately four years (dashed lines). The recent rise above the upper boundary of this range signals a breakout and the start of a new uptrend toward higher levels (D).
Technical indicators, including the rising 40wMA, reinforce the bullish outlook. Initial support is now established near $16, with secondary support at the 40wMA (currently near $15). Only a sustained decline below the 40wMA would weaken the constructive technical picture.
Point & Figure measurements provide initial upside targets of $19 and $21, while the multi-year trading range (dashed lines) supports higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com