Celestica Inc. - (CLS.TO) - January 31, 2022
Electronics manufacturer Celestica (CLS.TO) started to climb up the rankings in the SIA S&P/TSX Composite Index report last summer. In July it left the red zone and in November it returned to the Green Favored Zone where it has remained, returning 20.9%. On Friday, CLS.TO moved up 12 spots to 25th place.
Celestica (CLS.TO) shares spent the better part of three years stuck in a sideways trading range between $8.00 and $12.00. Accumulation resumed in July after the shares bounced up off support at a higher low near $9.00. Since then, they have been trending upward and in November, they broke out to the upside, signaling the start of a new uptrend. Last week, the shares completed a Bullish Engulfing candle and popped to their highest level since the summer of 2018 on a jump in volume, indicating increasing investor interest.
Some initial resistance may appear near $16.50, followed by $20.00 where a measured move, round number and the 2017 peak cluster together. Initial support appears at the 50-day moving average near $13.90, followed by the $12.00 breakout point.
Last fall, Celestica (CLS.TO) broke out of a base clearing $12.00 and has continued to climb since then, establishing a new uptrend of positive pattern completions and higher lows. Recently the shares completed a bullish Double Top breakout that has evolved into a High Pole advance carrying the shares to their highest level since 2018.
Horizontal and vertical counts suggest potential resistance near $18.65, then $19.40 followed by the 2017 peak near $20.15, just above the $20.00 round number. Initial support appears near $14.70 based on a 3-box reversal.
With a perfect SMAX score of 10, CLS.TO is exhibiting strength across the asset classes.
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