Power Corp. of Canada POW-T (Wednesday’s close – $37.34) rallied from $17.47 in March 2020 to $44.53 in September 2021 (A-B). The price fell below the 40-week Moving Average (40wMA) in early-2022 to signal a reversal of the rising trend (C).
The stock retraced about one-half of the 2020-2021 rise and then stayed in a horizontal trading range mostly between $31 and $36 for about eight months (dashed lines). The recent rise above this range suggests a breakout and the start of a new up-trend toward higher targets (D). A sustained rise above $36-37 would confirm it.
Behaviour indicators including the 40wMA confirm the bullish status. There is good support near $34; only a sustained decline below this level would be negative.
A rise above $36-37 would signal an initial Point & Figure target of $43. Higher targets are visible.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). 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.