stock
Cineplex (Tuesday’s close $12.74) declined from $16.76 in June, 2021, to $7.30 in December, 2022, (A–B), trading below a declining trendline (dashed line) and its falling 40-week Moving Average (40wMA). In July, 2024, the stock broke decisively above both, and the 40wMA subsequently turned higher. Cineplex reached $13.09 by year-end (C) before entering a triangular consolidation marked by lower highs and higher lows (dotted lines). The recent move above the triangle’s upper boundary suggests a breakout and the potential start of a new uptrend (D).
Solid support lies at $11.00–11.50. Only a sustained decline below this range would turn the outlook negative.
Point & Figure measurements provide targets of $14.00 and $15.50, while the size of the previous trading range supports the potential for higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com