Boralex declined from $18.79 to $5.06 in 2008 (A-B) followed by a recovery rally to $10.74 in 2010 (C). This was followed by a trading range between $7.50 and $9.50 (left shoulder), another between $6 and $7.50 (head) and then a higher range between $7.50 and $9.50 (right shoulder). This produced a bullish technical pattern known as an inverse head-and-shoulder formation. The recent rise above $9.50 signalled a breakout (D). Only a decline below its 40wMA (currently at about $8.50) would be negative.
Point & Figure measurements provide targets of $11 and $13. Higher targets are visible.
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.