Canfor Corporation : The CAD 24 resistance as line of sight
March 18, 2013 at 07:08 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
CA$21.25 |
CA$0 |
CA$19.3 |
-100% |
---|
The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the CAD 19.4 short term support. This trend should allow the stock to reach its CAD 24 long term resistance, which will be the first target price.
Thanks to these good indicators, it seems relevant to take a long position in Canfor Corporation at the current price. The first objective is the CAD 24 resistance. A stop loss will be set under the CAD 19.4 support because a breakdown of this level would damage technical pattern.
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