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what the charts say

Following our previous report (June 5, 2010 – $17.46) Finning International Inc. rallied to a high of $30.51 for a 75-per-cent appreciation at that time (A). The stock then stayed within a large triangle pattern made up of lower highs and higher lows for about three years (dashed lines).

The rise to $31.59 confirmed the breakout from this pattern (B); it was followed by a minor pullback to the 40wMA (C) and then a higher high (D). The stock is currently oversold; a rise above $31-$32 would suggest the resumption of the up-trend. Only a sustained decline below $26-$27 would be negative. Point & Figure measurements provide targets of $39 and $44. 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.