Seabridge Gold (Friday’s close $24.68) stayed in a large trading range mostly between $12 and $21 for about four years (dashed lines). After a quick dip below this range last March (A), the stock had a breakout above the top of the trading range to signal the start of a new major up-trend (B).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. The stock is currently in the midst of a minor correction; there is good support near $22-23. Only a sustained decline below the 40wMA (currently near ±$20) would be negative.
Point & Figure measurements provide a target of $29. The large trading range (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
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