Thomson Reuters Surges To A Near 3-year High – Targets 41.60

Thomson Reuters (TRI.TO) has been surging since last week and now targets the 41.60 area. The stock has been on the rise since the beginning of December 2012 and the latest trend accelerator was a strong Q3 earnings report. Also, revenues from ongoing businesses grew 2% to $3.1 billion in Q3.

Technically speaking, TRI.TO broke out of a consolidation area between 33 and 37 and also above 38.39, the 50% retracement of the downtrend between February 2007 and November 2008. This aggressive rally formed a long-term bullish pennant. The target of this bullish trend continuation is the 47 area. Notice that TRI.TO has traded above the rising 21-week exponential moving average since December 2012!

Source: Thomson Reuters Eikon

A closer target is 41.59, which is the 61.8% Fibonacci retracement of the aforementioned trend. It would take a close below 38.39 to slow down the uptrend, but this type of weakness is unlikely.

 
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