We reported a breakout from a large multiyear trading range and targets of $46 and $49 on April 25, 2020 ($40.29), and provided a target of $54 on Feb. 26, 2021 ($50.07). Stantec rose to a recent high of $59.55 to fulfill and exceed our targets (A).
Although behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend-line confirm the bullish status, Stantec (Friday’s close $xx.xx) remains extended and far above its 40wMA. There is good support near $48-$49, a level that may provide an attractive re-entry level.
The large multiyear trading range (dashed lines) supports significantly higher targets after the completion of the correction.
The Globe and Mail
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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