Alimentation Couche-Tard Inc. (Friday’s close $49.85) moved within a large trading range mostly between $26 and $34 from 2016 to 2018 (dashed lines). It had a breakout above $34 in early 2019 and reached a high of $46.10 in February, 2020 (A). After a temporary decline in March, 2020 (B), the stock resumed its uptrend, but ran into resistance a few months later near the previous high of $47 (shaded area).
At the beginning of this year, Alimentation once again declined below its 40-week Moving Average (40wMA – C), but quickly rose again and pierced above $47 to signal a breakout and the start of a new uptrend (D). A better entry may occur near $47-$48; only a sustained decline below ±$44 would be negative.
Point & Figure measurements provide targets of $54 and $59. Higher targets are visible.
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
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.