Bellatrix Exploration Ltd. declined from the high of about $24 to about $3 in 2007 where it began to form a bullish technical pattern known as an inverse head-and-shoulder (see left shoulder, head, right shoulder – dashed lines). After a rise to $6.19 in early-2011 (A) and a temporary decline to $3.20 (B), the recent rise to $5.20 (C) signalled the resumption of the up-trend. Only a decline below about $4.60 would be negative.
Measurements provide targets of $6.50 and $7.50. The large inverse head-and-ahoulder pattern (solid lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. ( www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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