Canadian Utilities Ltd. rallied from $31.56 in 2012 to $41.68 in 2013 (A-B), pulled back and settled in a trading range between $34 and $39 and later between $38 and $41 (dashed lines). The recent price action above the top of these ranges indicates renewed investor interest and the start of a new up-leg (C). Current prices should provide a good entry point (D). Behaviour indicators including the rising 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the bullish status. Only a decline below $39.50-$40 would be negative. Point & Figure measurements provide targets of $49 and $54. 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.
