Previously (Aug. 27, 2011 - $47.03) we reported that Bonterra Energy had a breakdown from a double top (bearish technical pattern). Soon thereafter, the stock declined to $39.02 (A) for a 17-per-cent depreciation at that time. After a recovery rally to $57.40 (B), the stock settled in a trading range between $41 and $47 and then between $47 and $51 (dotted lines). This price action produced a bullish technical pattern known as a Duplex Horizontal. The rise to $58.94 (C) confirmed the breakout. Current levels should provide a good entry point (D). Only a decline below $51-$52 would be negative.
Point & Figure measurements provide targets of $59, $64 and $69.
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.
Follow Ron Meisels on Twitter: