SIACharts Logo

Commentary >

Bank of Montreal - (BMO.TO) - January 10, 2022

With the exception of a few brief dips into the yellow zone, Bank of Montreal (BMO.TO) has been in the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the last year. Recently, BMO.TO has been moving up in the rankings, finishing Friday in 8th place, up 3 spots on the day.

For over a year, Bank of Montreal (BMO.TO) shares have been under steady accumulation, climbing in a step pattern of rallies followed by pauses at consistently higher levels. Back in October, the shares broke out over $130.00 and rallied toward $141.50 before levelling off. Last month, the shares successfully retested their previous breakout point as new support and then used it as a launching point for a new advance.

On Friday, BMO.TO broke out to a new all-time high, signaling the start of a new rally phase, and confirming that its underlying uptrend remains intact. A measured move from previous consolidation ranges suggests potential upside resistance near $150.00, then $152.50, $160.00, and $163.50 on trend. Initial support moves up to the 50-day average near $137.50.

Bank of Montreal (BMO.TO) spent over a year from the fall of 2020 through to the fall of 2021 under very steady accumulation, consistently advancing and forming a bullish High Pole. At the end of the year, BMO.TO staged a small 3-box correction. Last week, the shares broke out to a new all-time high, with a bullish Double Top breakout signaling the start of a new upleg.

Horizontal and vertical counts suggest next potential upside resistance may appear near $151.30, $157.40, and $188.10 on trend. Initial support appears near $131.70 based on a 3-box reversal.

With a bullish SMAX score of 9, BMO.TO is exhibiting strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.