Kinder Morgan (KMI-N, Friday’s close US$27.96) formed a multiyear, two-part base consisting of two trading ranges: the first between US$15 and US$22 and the second between US$15 and US$20 (dashed lines). We identified a breakout from the second range on Oct. 2, 2024 (US$21.39) and provided upside targets of US$24 and US$27. The stock subsequently surged to a high of US$31.48 in January, reaching and surpassing our initial objectives (A).
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At that point, Kinder Morgan had become extremely overbought and was trading well above its 40-week moving average (40wMA). The stock then pulled back into a corrective descending triangle characterized by lower highs and support near US$25.50 (dotted lines). A decisive move above US$29 would confirm a breakout from this pattern and mark the resumption of the long-term uptrend toward higher targets. Only a sustained decline below US$26-27 would be considered negative.
A rise above US$29 would signal Point & Figure targets of US$33 and US$36. The large multiyear 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.