Domtar Corp. rallied from $37.06 to $63.91 (A-B) and then traded below a falling trend line for about two years (dashed line). In late-2016, the stock rallied above the falling trend line to signal a trend-reversal (C) and subsequently pulled back to the falling trend line where it found support (D). The recent rise to $64.81 (E) signalled renewed investor interest and the start of a new up-leg (solid line). The subsequent correction (F) should provide a good entry point. Only a decline below $53-54 would be negative.
A rise above $61-62 would signal the resumption of the up-trend
Point & Figure measurements provide targets of $69 and $74. 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
Monica Rizk
Ron Meisels