Having topped out at $68.93 (A) during late 2010, Canadian Tire began to trade in a descending channel (dotted lines) till it found support near its 2010 lows (lower dashed line – B). A quick reversal occurred at that point, which eventually brought Canadian Tire above its downtrend channel. The stock now appears ready to resume the long-term up-trend toward higher targets (C). Only a decline below about $60 would reverse the positive status of this stock.
Point & Figure measurements provide targets of $74 and $79. 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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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