Mcleod Russell - bullish breakout after long consolidation

Mcleod Russel peaked at around 250 levels in December 2017. Post the 2018 peak, Mcleod's stock price collapsed and made a low of only 1.85 in march 2020. Since then, the stock saw a clear trend reversal and has moved up with the rest of the market peaking at 27.5 in late August 2020.

for the last 8 months, the Mcleod Russel stock has largely been range bound and the stock has consolidated for a very long time between 17-25. This Friday, the stock managed to break out of its 8 month long consolidation/sideways move (represented by the red TL on the chart) with reasonably high volumes.

Mcleod Russel has closed at its post crash high this week and as the chart shows, the stock should keep moving higher for the medium to long term.

Since the stock has seen a huge move in the last few years 250-2 and back to 28...pinpointing targets is a bit of a challenge. The nearest resistance for this stock is the 34-35 level which was a temporary support back in 2019. For further targets, we can utilize Fibonacci retracement levels with the 0.23 fib level coming in at 59.8 which makes an excellent medium to long term target for Mcleod Russel.

Once can go long in Mcleod Russel with a WCB SL of 25.5.


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