In our previous publication on SNC-Lavalin Group Inc. (Nov. 30, 2013 - $47.03), we reported a breakout from a large Duplex Horizontal formation (dashed lines) and above the long-term falling tend-line (dotted line). We suggested targets of $54 and $59. SNC rallied to a high of $54.50 recently to fulfill our first target (A). The second target remains clearly visible.
Technical indicators including the rising 40-week moving average (40wMA) and the MACD (lower panel) confirm the bullish status. Only a decline below $47-$48 would cancel the current upside potential.
Point & Figure measurements provide targets of $59 and $64. The large Duplex Horizontal pattern (dashed lines) supports higher targets.
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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