Skip to main content

Technical analysis shows the cheese maker is set to rise

Ivan Kmit/Getty Images/iStockphoto

Saputo Inc.stayed in a rising up-trend for 21/2 years (dashed lines). In mid-2011 it declined below both its 40-week moving average (40wMA) and the rising up-trend (A) and declined to $35.80 (B). Thereafter, the stock settled into a large wedge pattern made up of higher lows and lower highs (dotted lines). Recent price action (C) signalled the breakout from this large wedge formation, which supports higher targets. A better entry point may occur near $46-$47, but only a decline below about $44 would be negative.

Point & Figure measurements provide targets of $54 and $59. 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.

Story continues below advertisement

Report an error Editorial code of conduct
As of December 20, 2017, we have temporarily removed commenting from our articles. We hope to have this resolved by the end of January 2018. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.