WHAT THE CHARTS SAY
RON MEISELS AND MONICA RIZK

BULLISH ON CONNACHER

Following a sharp rise from $0.68 to $6.07 (A-B), Connacher Oil and Gas Ltd., (yesterday's close $4.17), settled into a large area of accumulation between $3.00 and $4.50 (see dashed lines). The stock pierced above this trading range recently to signal the start of a new major up-leg toward higher targets (C). The recent pullback to the 40-week moving average should provide a good buying opportunity. Only a sustained decline below $3.75 would reverse the positive long-term status of this stock.


Point & Figure measurements provide initial targets of $6 and $7 (44-per-cent and 68-per-cent appreciation potentials from current levels). Higher targets are visible.


Ron Meisels is a contributor to the http://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.

© 2008 The Globe and Mail