Paramount Resources (POU-T, Monday’s close $23.32) traded within a broad horizontal range between roughly $14 and $19 for nearly three years (dashed lines). In June of this year, the stock broke out above this range (A), then pulled back to find support near its 40-week moving average (40wMA) (B), before advancing to a higher high – confirming the breakout and signalling the start of a new uptrend (C).
Technical indicators – including the rising 40wMA and an upward-sloping trendline (solid line) – reinforce the bullish outlook. There is firm support near $20; only a sustained move below this level would be negative.
Point & Figure measurements provide an initial upside target of approximately $26, with the size of the prior trading range (dashed lines) suggesting the potential for even higher objectives.
stock
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart courtesy of www.LSEG.com