From 90 cents in 2008 to $15.10 in 2009 (A-B), Centerra Gold Inc. traded along a rising trendline (solid line). The stock then settled into a triangle formation (dashed lines) while still above the rising trendline. The ensuing rise to $23.60 (C) confirmed the breakout from this triangle pattern and above the $16 resistance level (dotted line). Subsequently, Centerra pulled back and found support where it previously had resistance (D - dotted line) and now appears on the verge of a new up-leg. Only a decline below around $16 would reverse the positive status.
Point & Figure measurements provide a target of $27. Higher targets are visible.
Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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