Russel Metals RUS-T (Tuesday’s close $44.86) rallied from $23.80 in July, 2022 to $47.39 in February, 2024 (A-B) while trading above its rising 40-week Moving Average (40wMA). In April, 2024, the stock fell below its average (C) but found good support at $35 (dashed line). By the end of the year, Russel Metals rallied above its 40wMA (D) but ran into resistance near the previous high (shaded area).
After a brief return to support earlier this year (E), the stock now appears to be headed toward previous highs near $46-47; only a sustained rise above this level would signal a breakout and the start of a new up-leg toward higher targets.
There is good support at the average (currently near $41-42); only a sustained decline below this level would cancel the current upside potential.
A rise above $46-47 would signal initial Point & Figure targets of $52 and $57.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com