Canadian Imperial Bank of Commerce had a sharp rise from 2013 to 2014 (A-B), fell below its 40-week moving average (40wMA – C) and stayed below a falling trend-line for most of 2015 (dotted line).
Recently, however, a recent surge in investor interest pushed the stock above resistance (shaded area) and above the falling trend-line to signal the start of a new up-leg (D).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a decline below $94 to $95 would be negative.
Point & Figure measurements provide targets of $107 and $114. 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.