Canadian Oil Sands Ltd. declined from $33.94 to $18.17 in 2011 (A-B), had a recovery rally to $25.19 (C) and then settled in a large descending triangle formation (dashed lines). Recent price action suggests the breakout from this triangle and the start of a new up-leg (D). The stock is currently in the midst of a minor pullback for a better entry point. Only a decline below about $20 would be negative.
Point & Figure measurements provide targets of $24 and $29 (14-per-cent and 37-per-cent appreciation potentials from current levels). The large descending 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 thewww.NA-marketletter.comwebsite and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.