Saputo Inc.stayed in a rising up-trend for 21/2 years (dashed lines). In mid-2011 it declined below both its 40-week moving average (40wMA) and the rising up-trend (A) and declined to $35.80 (B). Thereafter, the stock settled into a large wedge pattern made up of higher lows and lower highs (dotted lines). Recent price action (C) signalled the breakout from this large wedge formation, which supports higher targets. A better entry point may occur near $46-$47, but only a decline below about $44 would be negative.
Point & Figure measurements provide targets of $54 and $59. 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.Report Typo/Error
Follow us on Twitter:,