Canfor displays outstanding fundamentals. It has a very low valuation, with a P/E ratio of 9.95x for 2015. Analysts covering the stock target on average CAD 35.2, which represents a big appreciation potential of 35%.

Graphically, the stock fell sharply in the last weeks, but is coming back now on the CAD 25.2 support. Moreover, it coincidates with the upward trendline in both daily and weekly data. Those technical thresholds are likely to allow a significant technical rebound towards CAD 28.8.

Thus, long positions can be opened on the stock in order to aim CAD 28.8 as a first target. A stop loss will be placed under CAD 25.2 to avoid an important downturn.