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Russel Metals (RUS-T, Monday’s close $47.57) formed a bullish, multi-year base between 2015 and 2021, taking the shape of a “W” pattern (dashed lines). The stock broke out of this formation in 2021 (A), pulled back in 2022 (B), and then resumed its advance, reaching a new all-time high of $47.39 in 2024 (C). Since then, the stock has consolidated within a large triangular pattern defined by higher lows and lower highs (dotted lines). The recent advance above the upper boundary of this formation signaled a breakout and the resumption of the longer-term uptrend (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is solid support near $45-46; only a sustained decline below the 40wMA – currently around $43 – would be negative.
Point & Figure measurements provide targets of $54 and $59. The large “W” formation (dashed lines) as well as the triangle pattern (dotted lines) support significantly higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com