Onex (Friday’s close $90.61) declined from $106.05 in 2017 to $71.28 in 2018 (A-B), traded in a horizontal range mostly between $72 and $85 and later, except for the flash crash in 2020 (C), remained in another range mostly between $57 and $69. This price action produced a bullish technical pattern known as a Delayed Ending (dashed lines).
The recent rise from the latter range (D) and above the falling trend-line (E) signalled a breakout and the start of a new up-trend.
A minor correction toward $79-80 would provide an excellent entry level; only a sustained decline below $74-75 would be negative.
Point & Figure measurements provide targets of $99 and $109. The large Delayed Ending pattern (dashed lines) supports higher targets.
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.
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Chart source: www.decisionplus.com
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Monica Rizk
Ron Meisels