NFI Group Inc. - (NFI.TO) - January 18, 2021
Since we last mentioned bus producer NFI Group (NFI.TO) December 3rd issue of the Daily Stock Report, a lot has happened. A 55.0% gain for the share price since then has propelled the shares up from 67th place in the SIA S&P/TSX Composite Index Report, to 3rd place, along the way returning to the Green Favored Zone for the first time since May of 2018.
Accumulation in NFI Group (NFI.TO) shares has accelerated in recent months. Back in November the shares completed a bullish Ascending Triangle base with a breakout over $19.00 and rallied up into the mid $20s. Earlier this month, the shares embarked on a new advance, breaking through $25.00 on volume, snapping a long-term downtrend line, and running up above $30.00. Combined these signals confirm that a new uptrend is underway and that investor interest continues to increase.
Currently, the shares are approaching their 52-week high near $32.35 with potential upside resistance tests after that possible near $33.00 and $35.80 based on previous peaks and then the $40.00 round number on trend. Initial support moves up into the $29.40 to $30.00 area between the top of a gap and a round number.
Building on a series of bullish breakouts over the last few months including a Double Top, Spread Double Top, and Spread Triple, Top. NFI Group (NFI.TO) shares continue to climb. This month, the shares have started a new upleg, snapped a long-term resistance line and rallied up above the $30.00 level.
Next potential upside resistance tests on trend appear near $33.15 and $35.80 based on previous column highs, then $37.30 and $38.80 based on vertical counts, then the $40.00 round number. Initial support appears near $28.50 where a 3-box reversal converges with previous column highs and lows.
With a perfect SMAX score of 10, NFI.TO is exhibiting near-term strength against the asset classes.
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