Imperial Oil Ltd. (Friday’s close $44.38) declined below a long-term falling trend line for about seven years (dotted line from 2014). It had a down-gap in early 2020 (A) and then settled into a base-building pattern known as a “W” formation for about a year (dashed lines).
The stock had a breakout above its long-term falling trend line to signal the start of a major uptrend toward higher targets (B), had a minor correction toward the 40-week Moving Average (40wMA – C) and then resumed the uptrend (D).
Somewhat overbought at this time, the stock may have a minor correction toward $38-$39 to provide a good entry level. Only a decline below the 40wMA (currently near $37) would be negative.
Point & Figure measurements provide targets of $49 and $53. Higher targets are visible.
stock
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
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Monica Rizk
Ron Meisels