From the high of $31.30 in 2008, Finning had a sharp decline toward $12 (A-B) and then settled into a horizontal trading range between $12 and $15, followed by another higher range between $15 and $19 (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal. The recent rise above $19-$20 confirmed the breakout from this pattern toward higher targets (C).
Technical indicators confirm the bullish status: the 40-week (200-day) moving average (40wMA) is rising, the volatility system indicator (VSI) shows positive momentum and the moving average convergence/divergence (MACD) is rising (see lower panel). Only a decline below $15.50-$16.50 would reverse the current up-side potential of this stock.
A rise above $19-$20 would confirm Point & Figure targets of $24 and $29. There are no higher targets visible at this time.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Source: WWW.DECISIONPLUS.CA