Bullish on First Quantum Minerals Ltd theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
The Globe and Mail Published December 31, 2020 Bookmark
A.O. Smith (Thursday’s close US$54.82) declined from US$68.39 to US$40.34 in 2018 (A-B), had a recovery rally to US$56.65 in 2019 (C), and then settled in a bullish price pattern known as an
Inverse Head-and-Shoulders formation (solid lines). The recent rise above the neckline of this pattern (above US$53-54 – dotted line) signaled a breakout and the start of a new up-trend toward higher targets (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near US$51-52 and then at US$49; only a sustained decline below this level would be negative.