Celestica Inc. (Friday’s close $10.70) traded within a falling parallel channel for about three years (dashed lines). It fell sharply below its 40-week Moving Average (40wMA) last March (A) but quickly recovered above its Average and has been in an up-trend ever since (solid line).
Celestica reached a new 52-week high recently (B) and a sustained rise above $12.50-$13.00 (shaded area) would signal a breakout and the start of a new major up-trend toward higher targets.
Behaviour indicators including the rising 40wMA and the rising trend-line confirm the bullish status. There is good support at ±$10; only a sustained decline below this level would be negative.
A rise above ±$12.50 would signal Point & Figure targets of $14 and $16. Higher targets are visible.
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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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