High Liner Foods Inc. (Friday’s close $13.36) declined from $27.62 in November, 2016, to $6.35 in August, 2018, (A-B), rallied to $12.00 in September, 2019, (C), returned toward the previous low in 2020 (D) and then rose to a recent high of $14.13 (E). This price action produced a bullish technical pattern known as a “W” formation (dashed lines). The recent rise above the neckline of this pattern (dotted line) signalled a major breakout and the start of a new up-leg toward higher targets.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near ±$12; only a sustained decline below $11.50-12.00 would be negative.
Point & Figure measurements provide targets of $15 and $17. 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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