Industrial Alliance Insurance and Financial Services Inc. traded below a falling trend-line for about two years (solid line). In 2016, the stock had a sharp rise to $58.05 (A) and then settled in a horizontal trading range mostly between $52 and $59 (dashed lines). The recent rise to $61.73 signalled a breakout from the trading range and the resumption of the up-trend (B).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish potential. Only a sustained decline below ±$56 would be negative.
Point & Figure measurements provide targets of $64 and $69. The large trading range (dashed lines) supports higher targets.
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.