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Ovintiv (OVV-T, Monday’s close $82.67) advanced significantly from $2.95 in March, 2020, to $79.28 in June, 2022 (A–B), while consistently trading above its rising 40-week moving average (40wMA). Following that advance, the stock entered a corrective phase, forming a descending triangle characterized by a series of lower highs (dotted line) and horizontal support near $45 (shaded area). The recent rise above the top of this pattern signaled a breakout and the start of a new up-leg toward higher targets (C).
Ovintiv was overbought at that time and has since pulled back toward its 40wMA where it appears to have found support. The stock now appears ready to resume the uptrend. Only a sustained decline below $70-72 would cancel the current upside potential.
Point & Figure measurements provide initial targets of $88 and $98. The larger triangle formation supports the possibility of even higher longer-term targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com