Canfor Corporation is trading in a bullish trend and several elements argue for the continuation of this trend.

The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging. EPS estimates has regularly been revised upward by the Thomson Reuters consensus.

Technical patterns are in the green: prices are up for several months. The security came back to the CAD 20.35 short term support, corresponding to the 20 and 50-day moving averages, which may act as a stepping stone in the coming trading sessions. Hence, the stock may bounce towards the CAD 21.9 mid-term resistance.

In consequence, investors can take a long position in Canfor Corporation with a first target price at CAD 21.9. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be fixed under the short term support at CAD 20.35.