Finning International Inc. was in a down-trend as it declined from $34.34 to $16.37 (A-B) below its falling 40-week Moving Average (40wMA). It rallied above its average in 2016 to signal the start of a new up-leg (B-C). Subsequently, Finning settled in a trading range mostly between $24 and $28 (dotted lines). This price action produced a bullish technical pattern called a V-Extended (dashed and dotted lines). The recent rise above the top of this range (D) signalled a breakout and the start of a new up-leg. A better entry may occur near ± $28, but only a decline below $26 would be negative. Point & Figure measurements provide targets of $32 and $35. 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
Copyright 2017 The Globe and Mail Inc. All Rights Reserved.