Maple Leaf Foods MFI-T (Friday’s close $30.30) declined from $35.82 in August, 2019, to $17.04 in March, 2020 (A-B), had a recovery rally to $30.77 (C) and then settled in a large triangle pattern made up of lower highs and higher lows (dashed lines).
The stock had a sudden move on positive news in early November and rallied to $31.75 (D), but subsequently it retraced this rise to provide a good entry point. A rise above $30 would suggest the resumption of the up-trend.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. There is good support at $27.50-$28.00; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $32 and $35. The large triangle pattern (dashed lines) supports higher targets.
stock
Monica Rizk is the senior technical analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Monica Rizk