Onex Corp., ONEX-T, (Wednesday’s close $87) declined from $101.61 in January, 2022, to $61.99 in July of the same year (A-B) below a falling trend line (dotted line) and below the falling 40-week Moving Average (40wMA). The stock then settled in a large horizontal trading range mostly between $61 and $75 (dashed lines). The recent rise above the top of this range signalled a breakout and the start of a new uptrend toward higher targets (C).
However, the recent rise from the bottom of the range through the top was quite sharp and brought the stock far above the 40wMA, producing an overbought condition. Onex had a minor correction toward $75 recently (D) and appears ready to resume the uptrend. A sustained rise above $86 would confirm it. There is good support near $80; only a sustained decline below $75 would be negative.
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Monica Rizk is the senior technical analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
Monica Rizk