Recent rise signals start of a new up-leg
Agnico-Eagle had a sharp decline from about $80 in July, 2008 (A) to $27 in October of the same year (B). A recovery rally followed to $77.32 (C) and to a large trading range mostly between $55 and $67 (dashed lines). The rise to $75.35 last Thursday signalled the start of a new up-leg (D). Only a decline below the 40-week moving average (currently near about $61-$62) would suggest the need for additional base-building.
Point & Figure measurements provide a target of $89. The large area of accumulation (dashed lines) supports higher targets.
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.ca