Skip to main content
technical analysis

Toromont Industries Ltd. declined from $32.90 in August 2008 (A) to $19.03 in October of the same year (B), settled into a horizontal trading range ($20 and $24) and then into a wedge formation (lower highs and equal lows - see chart). The recent rise to $25.30 (C) confirmed the breakout from both the wedge pattern and the long-term descending trend line (see dashed line) and signalled the start of a new up-leg. Only a decline below ±$23.50 would reverse the positive status. The current weakness should provide a good buying opportunity.

Point & Figure measurements provide targets of $29 and $33. The large area of accumulation (see dotted lines) supports higher targets.



Ron Meisels is a contributor to the 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.

Source: www.decisionplus.ca

Interact with The Globe