Linamar declined from $89.42 to $42.24 (A-B) below a descending trend-line (dotted line) and below its falling 40-week Moving Average (40wMA) for over a year. The stock recently rallied above this trend-line (C) and above its 40wMA to signal renewed investor interest and the start of a new up-trend toward higher targets. Linamar is currently in the midst of a minor correction and expected to resume the up-trend thereafter. Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a decline below ±$53 would be negative.
Point & Figure measurements provide targets of $64 and $69. Higher targets are visible.
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
Monica Rizk
Ron Meisels