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Technical Analysis

WHAT THE CHARTS SAY

Bullish on Southwestern

RON MEISELS AND MONICA RIZK

May 9, 2009

Southwestern Energy Co. (yesterday's close $41.32 U.S.) Following the decline from about $52 to $19 in 2008 (A-B), Southwestern started a series of lower highs and higher lows. This price action developed a large wedge pattern (see dashed lines). The stock recently rose above this pattern (C) to signal a breakout. The rise above $36 to $37 confirms the start of a new up-leg toward higher targets. Only a decline below $28 to $29 would cancel its up-side potential. Current owners should use a stop-loss at about this level. Point & Figure measurements provide targets of $44 and $49 (6.5 per cent and 19 per cent appreciation potentials from current levels). The large wedge pattern could support significantly higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.


WHAT THE CHARTS SAY

Bullish on Richmont

RON MEISELS AND MONICA RIZK

May 2, 2009

Richmont Mines Inc. (yesterday's close $4.26) has been trading within a descending parallel channel for the past five years (dashed lines). Recently, the stock pierced above this channel (A) to signal the end of the negative trend and the start of a new up-leg.
Technical indicators including the rising 40-week (200-day) moving average, the volatility system indicator (VSI) and the moving average convergence/divergence (MACD) (see lower panel) confirm the bullish status. Richmont Mines could pullback toward $3-$3.25. Only a sustained decline below $2.75-$3 would reverse the current up-side potential.

Measurements provide a target of $6.50 (a 53-per-cent appreciation potential from current levels). Higher targets are visible.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.


WHAT THE CHARTS SAY

Short-term trading potential for Jean Coutu

RON MEISELS AND MONICA RIZK

March 28, 2009

Although Jean Coutu Group (PJC) Inc., (yesterday's close $7.75), is still in a long-term downtrend (see dashed line), it currently presents a short-term trading potential. The stock has completed a small area of accumulation (much like in Dec. 2006, which eventually resulted in a 25-per-cent gain). This trading range between $6 and $8.50 (see dotted lines) is about as long as the previous one, and could provide a similar rally, towards $10-$11.

At the same time, this accumulation area is not long enough to support a move above the heavy resistance of the descending trend-line, which also intersects currently at the $10-$11 level. Use a stop-loss order for protection. Jean Coutu could rally toward $10-$11 for a good trading opportunity. This is a speculative recommendation.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.


WHAT THE CHARTS SAY

Temporary rally possible for Brookfield

RON MEISELS AND MONICA RIZK

March 21, 2009

In our previous report (Sep. 15, 2007 - $35.54) we suggested downside targets of $32 and $20 for Brookfield Asset Management Inc. C, (yesterday's close $15.93). Following a series of lower lows and lower highs, the stock eventually filled these targets and overshot to a recent low of ±$15 (A).

The stock now appears to have found support at the previous low (see dotted line). This suggests that a temporary recovery rally toward the recent high is possible (B). Such a rally would only be temporary as there is significant resistance at $20-$21. A sustained decline below $15 would cancel the current upside potential.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.


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