WHAT THE CHARTS SAY

BULLISH ON J&J

RON MEISELS AND MONICA RIZK

Oct. 4, 2008

Following the sharp rise from $48.10 in October, 2003, to $69.99 in April, 2005 (A-B), Johnson & Johnson (yesterday’s close $66.16) settled into a large wedge formation characterized by higher lows and lower highs (see dashed lines). The stock had a breakout from this pattern to $72.76 (C) to signal the start of a major up-leg. Use all opportunities to accumulate the stock in view of higher targets. Only a decline below $65-$66 would reverse the positive status.

Point & Figure measurements provide targets of $79 and $89 (19.4-per-cent and 34.5-per-cent appreciation potentials from current levels). The large wedge pattern (see dashed lines) supports significantly higher targets.

WHAT THE CHARTS SAY

Bullish on Baxter

RON MEISELS AND MONICA RIZK

Sept. 27, 2008

Following our Dec. 22, 2007 report ($59.51 U.S.), Baxter Int’l Inc., (yesterday’s close $66.75), continued to trade above its rising 40-week moving average and above the ascending trendline (see dashed line). The stock rose to $65.20 this January (A), pulled back to both the 40-week moving average and to the rising trendline (B) and then resumed the uptrend (C). The current pullback (D) should provide a good buying opportunity in view of higher targets. Only a decline below $61-$62 would reverse the positive long-term status of this stock.

Point & Figure measurements provide targets of $79 and $89 (18-per-cent and 33-per-cent appreciation potentials 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

Bullish on Agrium

RON MEISELS AND MONICA RIZK

Sept. 20, 2008

We have maintained a bullish opinion on Agrium Inc., (yesterday’s close $89), since our first report on Dec. 2, 2003 ($21.47). In early-2004, the stock started a gradual rise within a larger area of accumulation (see dashed lines), and then switched to a sharper rise which, thus far, culminated at the recent high of $116.15 (A) for a 441-per-cent appreciation since our first report and a 77-per-cent appreciation since our March 29, 2008 ($65.56) report. The current pullback toward support (B – see shaded area) should provide another opportunity to accumulate the stock in view of higher targets. Only a decline below $70-$71 would reverse the positive status of this stock.

Point & Figure measurements provide targets of $114 and $124. 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

Bearish on Telus

RON MEISELS AND MONICA RIZK

Sept. 13, 2008

Telus Corp., (yesterday’s close $41.45), has developed numerous negative technical signals:

• The stock has declined below the neckline (see dashed line) of a large, bearish technical pattern known as the head-and-shoulder formation (A - see solid lines).
• The price is below the falling 40-week moving average.
• The volatility system indicator (VSI) shows negative momentum.
• The moving average convergence/divergence (MACD) is falling (see lower panel).

Use all opportunities to eliminate Telus in view of lower targets. Only a rise above the 40-week moving average (currently at ±$44) would reverse the stock’s negative status. Point & Figure measurements provide targets of $30 and $25. The large head-and-shoulder pattern points to lower 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.

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