Franco-Nevada Corp. (Friday’s close $134.12) rallied from $49.96 in July, 2015 to $105.69 in August, 2016 (A-B) and then built a large base in the form of a bullish “W” pattern (dashed lines). On May 18, 2019 ($102.22) we reported targets of $120 and $130. The stock recently rose above the neckline of this pattern (C - dotted line) to signal the breakout.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. Franco-Nevada recently completed a minor correction toward ±$120 (D) and now appears ready to resume the up-trend. Only a sustained decline below ±$115 would be negative.
Point & Figure measurements provide a target of $150. The large “W” pattern (dashed lines) supports higher targets.
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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
Monica Rizk
Ron Meisels