ShawCor Ltd. declined from about $37 to $14 in 2008 (A-B), settled into a large trading range between $14 and $19, then settled into another range between $19 and $23 (see dashed lines). These two areas combined created an extremely bullish technical pattern known as a Duplex Horizontal.
ShawCor rose above this latter trading range recently to create a breakout and confirm the start of a major up-leg (C). Any weakness toward $25 should be used as a major buying opportunity in view of the significantly higher Point & Figure targets. Only a decline below $25-$26 would reverse the positive status.
Point & Figure measurements provide targets of $34 and $39.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
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