West Fraser Timber WFG-T rallied from $21.60 in March 2020 (not shown) to $130.13 in March 2022 (A) above a rising trendline (dotted line) and the 40-week Moving Average (40wMA). The stock fell below these indicators in April (B), returned toward the previous high (C), and then settled in a large horizontal trading range mostly between $91 and $121 (dashed lines). The recent rise above $122-123 signaled a breakout and the start of a new up-leg toward higher targets (D).
Behavior indicators including the rising 40wMA confirm the bullish status. There is good support at $110-115; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $135 and $150. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com