Manulife Financial (MFC-T, Monday’s close: $49.28) spent roughly eight years trading within a broad horizontal range, mostly between $16 and $28 (dashed lines). On Jan. 10, 2024 – when the stock was at $28.93 – we noted that the ongoing advance appeared to signal a breakout, set an initial target of $32, and indicated that higher targets were visible.
The stock met and surpassed the initial target, climbing to a high of $46.42 in November of 2024, a 60-per-cent gain since our report (A). At that point, Manulife had become overbought and was trading well above its 40-week moving average (40wMA). It subsequently moved into a corrective channel (dotted lines), with a brief exception in April (B).
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Manulife has now broken above the top of this channel, indicating the resumption of the long-term uptrend (C). Strong support lies near $45; only a sustained decline below this level would be concerning.
Point & Figure measurements provide targets of $52 and $57. Higher targets are visible.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com