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Finning International FTT-T rallied from $10.59 in March 2020 to $40.22 in November 2021 (A-B). It reversed the trend in May-2022 when it fell below the 40-week Moving Average (40wMA – C) and stayed below a falling trendline (dotted line). The decline culminated at $25 (D) – a 50% correction of the previous rise.
In November 2022, Finning rallied above the 40wMA and the falling trendline to suggest the start of a new uptrend (E – solid line); the subsequent rise above $40 confirmed it (F).
Behaviour indicators including the rising 40wMA and the rising trendline support the bullish status. The recent correction toward the Average provides a good entry level; only a sustained decline below $37 would be negative.
Point & Figure measurements provide targets of $48 and $52. Higher targets are visible.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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