Parkland Fuel Corp. declined from $17.90 in September, 2007, to $5.20 in November, 2008 (A-B), had a recovery rally to $13.64 (C) and then settled in a horizontal trading range mostly between $9.50 and $12.75 (dashed lines). This price action produced a bullish technical pattern known as a V-Extended. The stock recently rallied above this trading range to confirm the breakout and the start of a new up-leg (D). Only a decline below the 40-week moving average (currently at about $12) would be negative. Point & Figure measurements provide targets of $16 and $18. The large V-Extended pattern supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
Infographic: Bullish on Parkland Fuel