Husky Energy declined from $54.24 to $24.78 (A-B), had a recovery rally to $36.09 and a trading range mostly between $25 and $30 (dotted lines). Subsequently, the stock settled into a bullish technical pattern known as a “W” formation (dashed lines). The recent rise to $28.33 signalled the breakout from this pattern and the start of a new up-leg (D). Only a sustained decline below $25.50-26 would be negative.
Point & Figure measurements provide targets of $32 and $38. The large compound base formation (dotted and dashed lines) could support 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.
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