On Jan. 5 ($40.74), we identified a breakout from a large triple-bottom formation on Gildan Activewear Inc. (dashed lines) and provided Point & Figure targets of $49 and $54. Shortly after our report, the stock started a sharp rise to fulfill our first target and the second is not far away (A).
Behaviour indicators including the 40-week Moving Average (40wMA) confirm the bullish status. Gildan Activewear (Friday’s close $51.82) has good support near $47.50-$48; only a sustained decline below the 40wMA (currently near ±$45) would be negative.
Point & Figure measurements provide targets of $54 and $59. The large triple-bottom pattern (dashed lines) supports higher targets.
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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