In our previous publication on Bonterra Energy Corp. (Jan. 4, 2014 – $53.41), we reported a breakout from a large duplex horizontal base (dashed lines) and suggested a minor pullback before the resumption of the up-trend. Following our report, Bonterra Energy pulled back and found support near $50 (A) and then resumed the up-trend (B). The stock is currently in the midst of a minor correction toward about $59, which should provide a good entry level. Only a decline below $56-$57 would be negative.
Point & Figure measurements provide targets of $64, $69 and $74. The large duplex horizontal (dashed 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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.