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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. ( 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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