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what the charts say

Semafo Inc. declined from $10.48 to $1.23 (A-B) below a falling trend-line (dotted line) and below its falling 40-week moving average (40wMA). After a one-half recovery rally to $5.48 in 2014 (C), it settled in a large descending triangle formation made up of lower highs and constant lows near $2.50 (dashed lines). The recent rise above the top of this pattern signalled renewed investor interest and the start of a new up-leg (D). A better entry may occur toward $4.50, but only a sustained decline below $4 would be negative. Point & Figure measurements provide an initial target of $6.50. Higher targets are visible.

Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.

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