Pembina Pipeline declined from $53.04 in September, 2014, to $26.05 in January, 2016 (A-B), rallied to $44.65 in April, 2017 (C) and then stayed in a horizontal trading range mostly between $39 and $47. This price action produced a bullish technical pattern known as a “V-Extended” formation (dashed lines). The recent rise above the top of this formation signalled a breakout and the start of a new up-leg (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support at $47-48; only a sustained decline below $45-46 would be negative.
Point & Figure measurements provide targets of $54 and $59. The large “V-Extended” formation (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. And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com