Alimentation Couche-Tard (ATD-T, Monday’s close $79.05) was in a major uptrend for more than four years, trading above a rising trendline (solid line) and its rising 40-week moving average (40wMA). We recommended the stock on numerous occasions during this period.
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Following the February, 2024, high of $87.27 (A), the stock began trading within a slightly declining parallel channel (dotted lines), while the 40wMA also trended lower. More recently, the 40wMA started to curl upward, and the stock advanced above the upper boundary of the channel (B). Together, these developments signaled the end of the downtrend and the start of a new uptrend toward higher targets. A decisive rise above $86-$87 would confirm the breakout.
There is good support near $76; however, only a sustained decline below the 40wMA (currently near $74) would be negative.
Point & Figure measurements provide targets of $89 and $99. 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