Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com
Western Forest Products WEF-T (yesterday’s close $18.59) declined from $77.40 in May 2021 (not shown) to $12.15 in August 2024 (A), then entered a base-building phase, trading primarily between $10.50 and $14.00 for about one year (dashed lines).
Earlier this year, the stock broke decisively above the upper boundary of this range and moved above its rising 40-week Moving Average (40WMA – B). After a healthy pullback to the moving average, it resumed its advance and recorded a higher high (C), confirming the emergence of a new uptrend.
Strong support is now evident near $16, with secondary support at the 40wMA, currently around $14. Only a sustained decline below the moving average would weaken the constructive technical outlook.
Point & Figure measurements provide targets of $20 and $22. Additional upside targets may emerge if the stock continues to strengthen.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com).
Chart source: www.LSEG.com