Technical analysis shows the oil and gas company is set to rise.
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.
Monica Rizk
Ron Meisels