Skip to main content

From the high of $21.16 in July, 2008, Galleon Energy (yesterday's closing price $6.98) had a sharp decline to $2.86 in December of the same year (A-B). Since then the stock has been building a lengthy base with the upper resistance at $6.25-$7 (see shaded area). The recent rise above $7 was extremely bullish, and signalled the start of a new up-leg toward significantly higher targets.

Technical indicators including the rising 40-week moving average, the VSI and the MACD (see lower panel) confirm the bullish status. Only a decline below $5.50 would reverse the current long-term up-side potential.

Measurements provide an initial technical target of $9 (a 29 per cent appreciation potential from current levels update ). The large base (between B-C) supports significantly higher targets.

Story continues below advertisement

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

Report an error
About the Author
President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨