Canadian Pacific Railway Ltd. has been in an uptrend since late-2011 (dashed lines). We confirmed higher targets on Oct. 6, 2012 ($86.98). Soon thereafter the stock rallied to $144.43 (A) for a 66-per-cent appreciation at that time.
CP has been trading in a descending triangle pattern for the past several months – remaining above about $120 while having lower highs (dotted lines). A decline below about $120 would be extremely negative but a rise above $135 followed by a rise above $145 would signal the resumption of the uptrend toward the next target of $169.
Look for a rise above $135 then $145 or decline below about $120 to signal the direction of the next move.
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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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