Bullish on Canadian Tire
In our previous report (Jan. 14, 2012 – $63.65) on Canadian Tire ‘A’ (Friday’s close $69.57) we identified a bullish V-extended base (dashed lines) and a corrective descending channel (dotted lines). Subsequently, the stock rallied to $66.85 (A) and then stayed in a trading range between $62 and $67 (solid lines). Canadian Tire ‘A’ had a breakout above this range when it reached a high of $71.55 (B) to signal the start of a new up-leg. Only a decline below ±$65 would be negative.
Point & Figure measurements provide targets of $79 and $84.