Tourmaline Oil (TOU-T) had a substantial rise from $5.31 in March 2020 (not shown) to $84.33 in September 2022 (A) above the rising 40-week Moving Average (40wMA). We first recommended the stock on May 7, 2021 ($28.88). After reaching the 2022 high, Tourmaline settled in a large triangle pattern of lower highs and higher lows (dashed lines). The recent price action above the top of this formation suggests the stock is on the verge of a breakout (B); a sustained rise above $68-69 would confirm it.
Behavior indicators including the rising 40wMA confirm the bullish potential. There is good support near $64-65; only a sustained decline below this level would cancel the current upside potential.
A rise above $68-69 would signal Point & Figure targets of $79 and $84 as well as higher targets.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com