In our report of April 23, 2011 ($29.78), we described a bullish “W” pattern (solid lines) and a large trading range (dashed lines). Subsequent to our report, Stantec Inc. traded near the top and then declined to the bottom of this range (A-B) but most recently reached a new four-year high above $32 (C). This rise signalled the breakout from the trading range and the start of a new major up-leg. Only a decline below about $26.50 would suggest additional base-building was required.
Point & Figure measurements provide targets of $39 and $44. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. 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