Emera Inc. had a sharp decline from $37.43 to $28.77 in 2013 (A-B) and then settled into a bullish behaviour pattern known as a "W" formation (dashed lines). The stock had a breakout from this pattern in 2014, reached a high of $35.72 (C) and then settled into a flag pattern (dotted lines). The recent rise to $38.30 indicates renewed investor interest and the continuation of the long-term up-trend (D). A better entry may occur toward $36, but only a sustained decline below around $34.50 would be negative.
Point & Figure measurements provide targets of $42 and $49. Higher targets are visible.
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.