From a high of $56.90 in 2008 (not shown), Shoppers Drug Mart declined to $32.57 in 2010 (A), rallied into 2011 and then settled in a trading range mostly between $39 and $44. This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The recent rise to $75.49 signalled the breakout from this pattern and the start of a new up-trend (B). Current levels should provide an attractive entry point. Only a decline below around $43 would be negative.
Point & Figure measurements provide targets of $54 and $59. The V-Extended formation (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.Report Typo/Error
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