Linamar (LNR-T, Tuesday’s close $71.75) rallied from $24.57 in March, 2020, to $91.98 in March, 2021 (A-B), but reversed the trend and fell below the 40-week Moving Average (40wMA) in mid-2021 (C); it then remained within a large descending triangle pattern made up of lower highs and support near $47 for about four years (dashed lines). The recent rise above the top of the triangle formation signaled a breakout from this pattern and suggests the start of a new up-leg toward higher targets (D). A decisive rise above $80 (above the 2023 high) would confirm the breakout.
Linamar is currently in the midst of a minor pullback toward its average for a better entry level. There is good support near $66-67; only a sustained decline below the average (currently near $62) would be negative.
Point & Figure measurements provide targets of $79 and $89. The large triangle pattern (dashed lines) supports higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com