Primo Water Corp. (Friday’s close US$17.76) was in a down-trend below a falling trend-line from 2017 to 2020 (dashed line). After a brief and sudden decline during the March, 2020, “flash crash” (A), the stock quickly recovered toward previous highs above its 40wMA (B), yet remained below the falling trend-line for about six months. Primo Water rallied to a high of US$17.85 earlier this year to signal the end of the down-trend and suggest the start of a new up-trend; a sustained rise above US$18 would confirm this. There is good support at ±US$16.50; a decline below US$16-16.50 would cancel the current up-side potential. A rise above US$18 would signal Point & Figure targets of US$21 and US$23. 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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