In our previous report (April 25, 2020 – $40.29) we identified a huge, multi-year trading range mostly between $28 and $38 (dashed lines), the breakout (A), and the subsequent correction that took place (B). We suggested that a rise above $39 would signal the resumption of the up-trend.
Following our report, Stantec Inc. (Friday’s close $50.07) rose to $44.85 (C), pulled back to support near $38.00 (D) and resumed the up-trend (E).
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status. There is good support at $44-45; only a sustained decline below $42-43 would be negative.
Point & Figure measurements provide a target of $54. The large multiyear trading range (dashed lines) supports significantly 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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