Intact Financial Corp. rallied from $56.35 to $95.77 (A-B) and then traded in a mostly horizontal trend, without rising above $96-$98 for the subsequent two and a half years (dashed line). The rise above this level signalled a breakout, renewed investor interest and the start of a new major up-leg (C). The stock had a minor correction toward its 40-week Moving Average (40wMA) recently and appears to have found support there. Only a sustained decline below $99-$100 would be negative. Point & Figure measurements provide targets of $114 and $124. The large trading range (dashed line) 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 2018 The Globe and Mail Inc. All Rights Reserved.