514-393-3653 info@phases-cycles.com

globe-and-mail-logo

Pembina Pipeline had a major decline from $53.04 to $26.05 (A-B). In early-2016 it rallied toward ±$44 and then stayed in a horizontal trading range mostly between $39 and $44. This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The recent rise to $46.17 signalled the breakout from this pattern and the start of a new up-leg (C). Behaviour indicators including the rising 40wMA confirm the bullish status. Only a sustained decline below $42-43 would be negative.

Point & Figure measurements provide targets of $49 and $54. 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 2018 The Globe and Mail Inc. All Rights Reserved.