Fortis Inc. traded within a large horizontal trading range between $30 and $35 for several years (dashed lines). In early 2014, the stock had a sharp rise from $29.78 to $42.23 (A-B) followed by a one-half correction to support near about $35 (C).
This correction brought the stock below the 40-week moving average (40wMA) and below the rising trend-line (C). Fortis has since had a minor rally toward its 40wMA (D). This price action suggests that Fortis will likely spend considerable time trading between $34 and $38. Only a sustained rise above $40-$41 would be positive.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled. Chart source: http://www.decisionplus.com/.