TC Energy (Friday’s close $68.61) traded above a rising trend-line from late 2015 to early 2017 (dotted line) but then encountered resistance at $64-65 during the rest of 2017 (shaded area). The stock declined to $50.28 (A) and then built a bullish technical pattern known as a “W” formation (dashed lines). The recent rise above $60 (B) signalled the breakout from this pattern and the start of a new up-trend.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish potential. There is good support near ±$63; only a sustained decline below the 40wMA (currently near ±$61) would be negative.
Point & Figure measurements provide a target of $74. The large “W” formation (dashed lines) supports higher targets.
rb-gi-meisels-0921stock
Chart source: www.decisionplus.com
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.