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Technical analysis shows the oil and gas company is set to rise.
Technical analysis shows the oil and gas company is set to rise.

What the Charts Say

Bullish on Vermilion Energy Add to ...

In our previous report on Vermilion Energy Inc. (Nov. 24, 2012 - $48.90), we announced a major breakout from a bullish technical pattern (wedge – dashed lines) and suggested higher targets. Subsequently, the stock rallied to $53.53 (A) and remained below this level for four months (dotted line). The recent rise to $58.70 confirmed the resumption of the long-term up-trend (B).

Technical indicators, including the rising 40-week moving average (40wMA) and the moving average convergence-divergence (MACD – lower panel), confirm the bullish status. Only a decline below about $52 would be negative.

Point & Figure measurements provide targets of $64 and $69. 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.

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