Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Calfrac, which operates in drilling-heavy areas such as the Marcellus shale formation, gets close to a third of its revenue from its U.S. operations. (Nathan VanderKlippe/The Globe and Mail)
Calfrac, which operates in drilling-heavy areas such as the Marcellus shale formation, gets close to a third of its revenue from its U.S. operations. (Nathan VanderKlippe/The Globe and Mail)

What the Charts Say

Bullish on Calfrac Add to ...

Calfrac Well Services Ltd. declined from $38.65 to $20.22 (A-B) and then settled into a bullish technical pattern known as a “W” formation (dashed lines). The rally to $28.54 (C) signaled the breakout from this pattern and the start of a new up-leg. Calfrac pulled back to support (D) and now appears ready to resume the up-trend.

Technical indicators including the rising 40-week moving average (40wMA) and the MACD (Moving Average Convergence Divergence – lower panel) confirm the bullish status. Only a sustained decline below $24-24.50 would be negative.

Point & Figure measurements provide targets of $30 and $34. 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.

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular