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Jeff McIntosh/The Canadian Press

Canadian Pacific Railway Ltd. rallied from $32.36 to $69.48 (A-B), declined to $46.01 (C) and then rallied again to $79.29 (D). The stock then settled in a trading range between $72 and $78 (dotted lines); this price action neutralized the overbought condition and allowed the 40-week moving average to catch up to the price (E). The subsequent rally to $85.60 (F) signalled the breakout from the trading range and the resumption of the long-term rising trend. Only a decline below about $75 would be negative. Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. ( Ron Meisels is a contributor to the website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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