Vermilion Energy Inc. rallied from $20.02 to $52.45 (A-B) and then stayed in a corrective move in the shape of a large wedge pattern. This consisted of lower highs and higher lows for the subsequent two years (dashed lines). Recent price action (C) suggests the stock is on the verge of a major breakout from this formation; a sustained rise above $49-$50 would confirm the breakout. Only a decline below around $46 would be negative.
A rise above $49-$50 would signal Point & Figure targets of $58 and $64. The large wedge 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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