Following our July 18, 2009 ($44.08) report, SNC-Lavalin Group Inc. rallied to $50.34 (A), pulled back to its rising 40-week moving average (40wMA) (B) and recently resumed the up-trend (C). The large "W" formation identified in our previous report (see dashed lines) continues to support higher targets.
Technical indicators continue to remain positive: the 40wMA is rising, the volatility system indicator (VSI) shows positive momentum and the moving average convergence/divergence (MACD) is rising (see lower panel). Only a decline below the 40wMA (currently at about $47) would reverse the positive long-term status of this stock.
Point & Figure measurements provide a target of $64 (a 22-per-cent appreciation potential from current levels). The large "W" pattern supports higher targets.
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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