Canyon Services Group traded in a large rising triangle formation made up of equal highs and higher lows for the past two years (dashed lines). The stock recently rallied above $13 to signal a breakout from the triangle and the start of a new up-leg (A). At the same time, the stock is currently over-bought and a pullback toward about $12.50 would provide a better entry point. Only a decline below about $12 would be negative.
Point & Figure measurements provide an initial target of $16 (a 14-per-cent appreciation potential from current levels). The large triangle pattern (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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