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Russel Metals’ Hamilton plant takes coiled rolls of steel and cuts them down into plates for which then can be turned into products, including heavy machinery.

Glenn Lowson/The Globe and Mail

Russel Metals Inc. declined from $27.75 to $18.90 (A-B), rallied to $27.95 (C) and then traded in a horizontal trading range mostly between $24 and $28 in 2012 (C-D). This price action produced a bullish technical pattern known as a "V-Extended" (solid lines). Recent price action signalled the breakout from this formation and the start of a new up-leg (D). Only a decline below its 40-week moving average (currently at about $26.50) would be negative.

Point & Figure measurements provide targets of $34 and $38. Higher targets are visible.

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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About the Authors
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

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

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