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Discarded tissue in a bin at Cascades Tissue Group plant, in Candiac, March 3, 2011. (Christinne Muschi For The Globe and Mail)
Discarded tissue in a bin at Cascades Tissue Group plant, in Candiac, March 3, 2011. (Christinne Muschi For The Globe and Mail)

What the Charts Say

Bullish on Cascades Add to ...

Cascades Inc. rallied from $1.70 to $9.80 (A-B), but when it violated its 40-week moving average (40wMA – C), it began a long decline as illustrated by the falling trend-line (dotted line). The stock eventually settled in a trading range mostly between $4 and $5 (dashed lines). Cascades had a breakout from this range recently (D) followed by a pullback to its 40wMA. A rise above about $6.25 would confirm the resumption of the up-trend. Only a decline below about $5.25 would be negative.

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Point & Figure measurements provide targets of $7 and $8. The large area of accumulation (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.

Follow us on Twitter: @Monicarizk1, @RonsBriefs

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