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what the charts say

Encana Corp. declined from $26.85 in 2014 to $4.14 in early 2016 (A-B). In early 2017, it rallied to $18.13 (C) and then settled in a large trading range mostly between $11 and $18. This price action produced a bullish technical pattern known as a V-Extended formation (dashed lines).

A sustained rise above $18.50-19.00 (dotted line) would signal a breakout from this pattern, renewed investor interest and the start of a new up-leg.

Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish potential. Only a sustained decline below $15.00-15.50 would be negative.

A rise above $18.50-19.00 would signal Point & Figure targets of $21 and $24. Potentially higher targets are visible.

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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

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