WestJet declined from $34.95 to $14.67 (A-B), rallied to $24.98 (C) and then stayed in a horizontal trading range mostly between $21 and $24. This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The recent rise signalled renewed investor interest and the start of a new up-leg (D). Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. The stock may pull back toward $25-26, but only a sustained decline below ±$24.00 would be negative. Point & Figure measurements provide a target of $31. The V-Extended formation (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels