SNC-Lavalin Group Inc. traded below a falling trend-line for three years (dotted line). In 2012, the stock stayed in a trading range between $35 and $42 (dashed lines) and then had a breakout to $49.85 (A); however, this rise was warded off by the pressure of the falling trend-line (dotted line).
The stock then settled in another range between $39.50 and $45.50 (dashed lines). This price action produced a bullish technical pattern: Duplex Horizontal (dashed lines). The recent rise to $47.65 (B) signaled the breakout from the large base formation and above the long-term falling trend-line. Only a decline below around $43 would be negative.
Point & Figure measurements provide targets of $54 and $59.
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.