Canadian Tire CTC-A-T, (Monday’s close $189.02) had a sharp rise from $67.15 in March, 2020 (not shown) to $213.85 in May, 2021 (A), reversed the trend when it fell below the 40-week Moving Average (40wMA – B), and started trading below a falling trendline (dotted line). The stock appeared to be ready to reverse this trend in 2023 when it rallied above the 40wMA, but Canadian Tire ran into resistance at the falling trendline (C). The recent sharp rise above the falling trendline confirmed the breakout and the start of a new uptrend (D). At the same time, Canadian Tire is becoming overbought as it rises farther away from its average; a minor pullback toward $170-175 would provide a better entry. Only a sustained decline below $160-165 would be negative.
Point & Figure measurements provide targets of $200 and $220. 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