Shaw Communications Inc. (Friday’s close $27.64) declined from $31.93 in January, 2015, to $22.55 in February, 2016 (A-B – solid line), rallied to $30.44 in June, 2017 (C – dashed line) and then settled into a large triangle pattern made up of lower highs and equal lows near $24 (dotted lines). The recent rise above the top of this pattern 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. Only a sustained decline below ±$26 would be negative.
Point & Figure measurements provide targets of $30 and $33. Higher targets are visible.
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Chart source: www.decisionplus.com
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.