Canadian Natural Resources Ltd. declined from $50.50 to $25.58 (A-B) and then settled in a large rising triangle formation made up of higher lows and equal highs (dashed lines). Recent price action suggests the stock is on the verge of a breakout from this pattern (C). A sustained rise above $35-$36 would confirm the start of a new major up-leg. Only a decline below its 40-week moving average (currently at around $32) would suggest additional base-building is required.
A rise above $35-$36 would signal Point & Figure targets of $39 and $44. The large triangle formation (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.