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.Report Typo/Error