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Despite the series of higher lows during the past year (solid line), Weyerhauser remained below resistance at ±$33.

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Weyerhaeuser had a sharp decline from $37.04 to $26.73 (A-B) and then remained below ±$33 for almost two years (dashed line). Despite the series of higher lows during the past year (solid line), the stock remained below resistance at ±$33.

The recent rise above this level (C) signalled a breakout, renewed investor interest and confirmed the start of a new major up-trend.

Behaviour indicators including the rising 40-week moving average (40wMA) confirm the positive status. Only a decline below ±$31 would be negative.

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Point & Figure measurements provide targets of $38 and $42. Higher targets are clearly visible.

Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). They may hold shares in companies profiled.

Chart source: www.decisionplus.com

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