ARC Resources Ltd. (Friday’s close $10.03) declined from $24.74 in October, 2016, to $2.42 in March, 2020 (A-B), below a falling trend-line (dotted line) and under a declining 40-week Moving Average (40wMA). In 2020, the average began to flatten (a positive sign) and the price started to move above it.
The ±$8.50 level has provided resistance during the past two years (dashed line). However, the recent price action above this level was positive and suggests the start of a new uptrend (C). A sustained rise above $10 would confirm the breakout.
There is good support at $8.25-$8.50; only a sustained decline below this level would be negative.
A sustained rise above $10.00-$10.50 would signal Point & Figure targets of $11.50 and $12.50. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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Monica Rizk
Ron Meisels