Maple Leaf Foods Inc. traded in a large horizontal trading range mostly between $10.25 and $13 for more than two years (dashed lines). The rise to $14.15 (A) signalled the breakout from this large area of accumulation and the start of a new major up-leg. A minor pullback toward its 40-week moving average (40wMA) ensued (B) and then a higher high to confirm the new up-trend (C). Another minor pullback may occur, but only a decline below $12.50-$13 would reverse the long-term positive status of this stock.
Point & Figure measurements provide a target of $17. 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.