In our previous report (Dec. 8, 2012 - $28.75), we suggested that Husky Energy Inc. had a breakout from a bullish “W” formation with targets of $32 and $38. Soon thereafter, the stock rallied to a high of $32.34 (A) to fulfill our first target. Upon reaching a target, a stock will often pull back before rising to the next target. Indeed, Husky Energy pulled back to support at the neckline of the “W” pattern (B) and now appears ready to resume the up-trend (C). Only a decline below $28.50-$29 would be negative.
Point & Figure measurements provide targets of $36 and $39. 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.