From the high of $65.60 in late-2007 (A), Atco Ltd. had a two-part decline to $32.51 in 2008 (B). Subsequently, the stock settled into a trading range between $34 and $40 (see dotted lines). In mid-2009, Atco started to rise above the long-term descending trend line (see dashed line) and above its 40-week moving average (40wMA) (C). This was the first indication of the end of the decline and the start of a new up-move. The recent rise to $42.90 (D) created a breakout from the trading range and confirmed the start of a new up-leg toward higher targets. Only a decline below the 40wMA (currently at ±$38) would reverse the positive status.
Point & Figure measurements provide targets of $49 and $54. The large trading range supports significantly higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Source: www.decisionplus.ca