The structural uptrend (going back around three years to 2012) is somewhat extended over time and has clearly lost some momentum over the last year. Long-term support from the 45-degree bullish support line (aka 'BSL', medium blue, slope of 1) was tested recently and held, but the high performance support line (dark blue, slope of 2) appears to be in jeopardy of a significant breach. In addition, the stock hasn't made any new relative highs in price since early last year (the 'x' near C-5). While the uptrend could certainly re-assert itself, we have to consider the likelihood that it will be weaker than before as well as the possibility that a top has formed at 'C'. Whether that overhead resistance leads to a significant decline in relative price (back to 'H') or a new trading range (perhaps at 'E'?) cannot be predicted. The only thing we can say with any degree of certainty is that this security is at an important junction with respect to its price performance compared to the MSCI All Country World Index and it seems to be an inopportune time, technically speaking, to make overly positive prognostications.
*for more on the unique way we look at individual companies' fundamentals (and why), see here, here, and here.
**for more about our point-and-figure charting methodology, see here.
The information listed above is for example purposes only and should not be construed as the Investment Advisor’s opinion or investment outlook.
