Parex Resources PXT-T (Friday’s close $27.87) rallied from $12.19 to $26.78 (A-B) and then fell below its 40-week Moving Average (40wMA) to signal the end of the uptrend (C).
For about three years, the stock meandered above and below the 40wMA but remained below a long-term falling trend-line (dashed line).
After a sudden yet brief decline in March 2020 (D), Parex Resources started an uptrend above a rising trend-line (solid line). In October 2021, the stock pierced above the falling trend-line (E), pulled back to support at the rising trend-line (F) and then reached an all-time high recently, confirming a breakout and higher targets (G).
There is good support near $26; only a sustained decline below $24 would be negative.
Point & Figure measurements provide a target of $32. Higher targets are visible.
stock
Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.