Are we there yet?
For some superstitious reason I have focussed on the Fibonacci or “golden section” ratio of 61.8 for a termination point for this stock. This is the last of the blue chips in Canada but one should not forget that it also gave birth to one of the largest financial disasters in Canada’s history, Nortel Networks, which filed for bankruptcy protection in 2009, just seven years ago all though troubles started much earlier, arguable, in about 2001.
It is possible to show 3 different “diagonal triangles” in this stock using different timeframes. We only show the two shortest ones. The first one speaks for itself. The second one, starting from about $52, only 2 dollars higher than the first, can be interpreted as either a diagonal or simple a 5-wave sequence. As a diagonal, shown in green, the 5th wave cannot exceed the 3d wave if it were then to become the shortest wave. That puts a maximum upside of roughly $62. In the case of a simple 5-wave sequence, the trend line exclusive of a throw-over, should do the trick. That same trend line should also hold the advance on the bigger chart.
The high so far is $61.10 intraday so we reiterate our sell recommendation for this stock. Of course we do not recommend anything as this blog does not give advice, all we do is think aloud, hopefully.