For about 14 years, Finning International (FTT-T, yesterday’s close $58.22) had a series of up-legs and down-legs below resistance near $34-35 (shaded area). The stock had a breakout above this level in mid-2023 (A) and then settled in a horizontal trading range between $35 and $45 (dashed lines). The subsequent rise above the top of this range signaled a breakout and the start of a new uptrend (B).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. The recent surge from approximately $35 to $57 has been notably sharp, leaving Finning in an overbought condition. A modest one-third retracement toward the $49–50 area would offer a more attractive entry point. Only a sustained decline below $46-47 would be negative.
Point & Figure measurements provide an initial target of $64. Higher targets are visible.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com