Our previous report (Dec. 10, 2021 - $44.38) identified a breakout from a bullish W formation (dashed lines) and provided targets of $49 and $53. Imperial Oil IMO-T (Wednesday’s close $74.44) rallied to a high of $72.96 in May for a 64 per cent gain in five months (A). The stock became extended at this level and pulled back below a falling trendline (dotted line) toward the 40-week Moving Average (40wMA), where it found good support (B). The recent price action confirms the resumption of the long-term uptrend (C).
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support near $66-68; only a sustained decline below the 40wMA (currently near $63) would be negative.
Point & Figure measurements provide targets of $79 and $84. 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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Monica Rizk