In our previous publication on Cascades Inc. (November 2013 – $5.95), we suggested higher targets and the start of a new up-leg. Following our report, Cascades quickly rallied to $7.60 for a 27-per-cent appreciation in five months (A). The stock then pulled back and found support near $6 (dotted line) and then had a sharp rise to $13.65 for a 129-per-cent appreciation since our first report (B). The subsequent pullback toward the 40-week moving average (40wMA – C) should provide another buying opportunity in view of higher targets. Only a sustained decline below $9.50 would be negative. Point & Figure measurements provide targets of $12.50 and $14. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.