Vermilion Energy VET-T (Friday’s close $38.07) declined from $49.67 in 2018 to $2.20 in 2020 (A-B) below a falling trendline (dotted line) and below the falling 40-week Moving Average (40wMA). It then settled in a horizontal trading range between $3 and $9 in 2020 and another between $7 and $11 for most of 2021. This price action produced a bullish technical pattern known as a Duplex Horizontal (dashed lines).
The stock had a breakout from this pattern and reached $30.76 (C), but then was far above the 40wMA. It had a correction to its Average and the rising trendline (solid line), where it found good support (D). The stock has since resumed the uptrend (E).
There is good support near $27-$28 and at the 40wMA (currently near $24-$25); only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $40 and $44. 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
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Monica Rizk