On June 29 ($67.14), we identified a bullish Inverse Head-and-Shoulders formation (solid lines) and reported that the rise above $62-$63 (the neckline of the pattern – dotted line) signalled an initial target of $74. Almost immediately, a sharp rise moved Agnico-Eagle Mines (Friday’s close $79.99) to a recent high of $86.39 for a 29-per-cent gain at that time (A).
At this point the stock became extremely overbought, had a minor correction (B) and found support near its 40-week Moving Average (40wMA) near ±$68 (B). Now the stock appears ready to resume the up-trend (C). Only a sustained decline below ±$68 would be negative.
Point & Figure measurements provide targets of $89 and $99. The large Inverse Head-and-Shoulders formation (solid lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com