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Bank towers jut into the sky at the corner of Bay and Adelaide streets in Toronto.The Globe and Mail

Globe editors have posted this research report with permission of Phases & Cycles Inc. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

On Bank of Montreal:

BMO traded in a horizontal trading range between $55 and $65 for more than three years. The stock pierced above the top of this range last July to start a new up-leg. No top formation is visible at present. A minor correction may occur but only a sustained decline below its 40-week Moving Average would be negative.

Look for a pullback toward the 40wMA (a 12-per-cent short-term depreciation risk) before the resumption of the long-term up-trend.

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