Franco-Nevada built a large base made up of two trading ranges, between $25.50 and $31.50 and between $29 and $35 (dashed lines). This price action produced a base known as a Duplex Horizontal. In mid-2011, the stock rallied above this base (A) and then settled in a wedge pattern made up of lower highs and higher lows (dotted lines). The recent rise above $45 signalled the breakout from this wedge and the start of a new up-leg. Only a decline below about $39.50 would be negative. Point & Figure measurements provide targets of $49 and $54.
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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com