Negative sentiment drove Laurentian Bank of Canada from $55.87 to $38.62 in 2011 (A-B). After a recovery rally to $48.68 (C), the stock settled in an ascending triangle pattern made up of equal highs and higher lows (dashed lines), which suggested rising bullish sentiment, but steady selling near $48. Renewed bullishness drove the price above this pattern recently to signal the start of a new major up-leg (D). Only a decline below $47.50-$48 would cancel the current up-side potential.
Point & Figure measurements provide targets of $54 and $59. The large ascending triangle (dashed lines) supports 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.