We first recommended Extendicare in October, 2015 ($8.59), suggesting that a rise above $9 would signal the breakout from a large trading range (dashed lines).
Subsequently, it rallied to a high of $9.95 (A) for a 16-per-cent gain in less than a month. We then confirmed the breakout and higher targets in December, 2015 ($9.25), but indicated that first a pullback was in order.
Extendicare then pulled back near its 40-week moving average (40wMA) and the rising trend-line (solid line – B) and now appears ready to resume the up-trend (C). Only a decline below $8.50 would be negative. Point & Figure measurements provide a target of $11. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.