Total SA declined from $74.22 to $47.31 (A-B) and then settled in a bullish technical pattern known as an Inverse Head-and-shoulder (solid lines).
The stock had a breakout above the neckline of this pattern in mid-2017 (dotted line – C), pulled back toward its 40-week Moving Average (40wMA – D) and resumed the up-trend (E).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the positive status. Total SA is somewhat overbought; a minor correction toward ±$59 would provide a better entry point, but only a sustained decline below $54-55 would be negative.
Point & Figure measurements provide a target of $69. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels