CAE Inc. declined from $13.36 to $9.03 and then stayed in a horizontal trading range mostly between $9.50 and $11.25 for about two years (dashed lines). The recent rise above the top of this range (D) confirmed the breakout and the start of a new up-leg. The sharp move from $10.24 to $12.02 (C-D) produced an over-bought condition and was followed by a minor pullback to provide a better entry level (E). Only a decline below about $10.50 would be negative.
Point & Figure measurements provide targets of $13 and $15.
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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.