Canadian Tire CTC-A-Trallied from $67.15 in March 2020 to $213.85 in May 2021 (A-B) and then had a one-half correction within a falling parallel channel over a period of two years (dotted lines).
The recent rise above the top of this channel signaled the end of the correction and the start of a new uptrend toward higher targets (C). The stock is currently in the midst of a minor correction for a good entry-level.
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trendline (solid line) confirm the bullish status. There is good support near $164-165 and then again near ±$160; only a sustained decline below the latter would be negative.
Point & Figure measurements provide targets of $210 and $225. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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