Trican Well Service Ltd. traded below a falling trend-line for about one year (dashed line) and then settled in a bullish technical pattern known as a “W” formation in 2012 (dotted lines). Recent price action above $14 to 14.50 (C) confirmed the breakout from the “W” pattern and confirmed higher targets. Only a decline below its 40-week moving average (40wMA – currently at around $12.50) would be negative.
Point & Figure measurements provide targets of $15.50 and $17. The “W” formation 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.