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Richmont Mines Inc. has been trading within a descending parallel channel for the past five years (dashed lines). Recently, the stock pierced above this channel (A) to signal the end of the negative trend and the start of a new up-leg.

Technical indicators including the rising 40-week (200-day) moving average, the volatility system indicator (VSI) and the moving average convergence/divergence (MACD) (see lower panel) confirm the bullish status. Richmont Mines could pullback toward $3-$3.25. Only a sustained decline below $2.75-$3 would reverse the current up-side potential.

Measurements provide a target of $6.50 (a 53-per-cent appreciation potential from current levels). Higher targets are visible.

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Ron Meisels is a contributor to the http://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.



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About the Authors
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

Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

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