Canadian Pacific Railway CP-T (Wednesday’s close $103.31) rallied from $50.40 in March, 2020, to $100.00 in June, 2021 (A-B), stayed in a horizontal trading range mostly between $83 and $100 (dotted lines) and, after a rise to $105.46 earlier this year (C), settled in another range mostly between $87 and $107 (dashed lines).
The recent move above this range suggests a breakout and the start of an uptrend toward higher targets (D); a sustained rise above $110-111 would confirm it.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near $100; only a sustained decline below $97 would be negative.
Point & Figure measurements provide targets of $125 and $135. The large trading ranges (dotted and dashed lines) support higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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