Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A Jean Coutu pharmacy in downtown Montreal (SHAUN BEST/REUTERS)
A Jean Coutu pharmacy in downtown Montreal (SHAUN BEST/REUTERS)

What The Charts Say

Bullish on Jean Coutu Group Add to ...



In our previous report (March 28, 2009, $7.75), we suggested that Jean Coutu could rally toward $10-$11 but that the upside was limited due to the long-term falling trendline (solid line). Soon afterward, the stock rallied to $10.94 (A), and then, as expected, encountered resistance at the long-term descending trendline. Subsequently, the stock settled into a pattern of lower highs and lower lows (dotted lines) and then into a pattern of higher highs and higher lows, to signal a reversal (rising dashed lines). This action ended the falling trend and signalled the beginning of a new up-trend.

More related to this story

Point & Figure measurements provide a target of $14. Only a decline below the 40-week moving average (about $10) would be negative.

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

Follow us on Twitter: @RonsBriefs, @Monicarizk1

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories