The decline in shares of IGM Financial Inc. from $54.95 in November, 2007 (A) to $24.20 in February, 2009 (B), was followed by a sharp rise to $45.43 in August, 2009 (C), and a horizontal trading range mostly between $37 and $45. This price action produced a bullish technical pattern known as a V-Extended formation (dashed lines). The recent rise to $49.42 (D) signalled the breakout and the start of a new major up-leg. Only a decline below the 40-week moving average (about $43) would reverse the positive status of this stock.
Point & Figure measurements provide targets of $54 and $59.
Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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