On Jan. 7, 2017 ($45.44) we reported a breakout from a large trading range (dashed lines) and targets of $57 and $62. West Fraser Timber Co. Ltd. rallied to a high of $62.50 in May, 2017 to fulfill our targets (A).
The stock then stayed in a slightly rising wedge pattern for about three months (dotted lines) and recently had a breakout from this formation to signal the resumption of the up-trend (B). The subsequent correction provides an attractive entry level.
There is good support at ±$60, but only a decline below $57-58 would be negative.
Point & Figure measurements provide targets of $74 and $79. 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
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