Power Corp. of Canada had a sharp decline from $34.79 to $26.50 (A-B) and then remained below a falling trend-line (dashed line) for almost two years. During the past year, the stock found support near ±$27 (shaded area) and then rose above both the falling trend-line and the rising 40-week moving average (40wMA). This price action signalled renewed investor interest and the start of a new up-leg (C). Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a decline below $28.50-29.00 would be negative. Point & Figure measurements provide targets of $34 and $37. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: decisionplus.com