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Tourmaline Oil (Friday’s close $28.88) stayed below a falling trend-line for about three years (dotted line) and then settled in a horizontal trading range mostly between $10 and $16 from 2019 to 2020 (dashed lines). After a temporary dip during the “flash crash” in March, 2020 (A), the stock started an up-trend that brought the stock above this trading range, above the falling trend-line and above its now rising 40-week Moving Average (40wMA - B).
After another minor trading range mostly between $16 and $20 for about six months in 2020 (dashed lines), Tourmaline Oil had another breakout to signal the start of a new up-trend (C).
There is good support near $22-23; only a sustained decline below $20 would be negative.
Point & Figure measurements provide targets of $29 and $33. Higher targets are visible.
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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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