Stella Jones Inc - (SJ.TO) - December 5, 2022
In today’s edition of the Daily Stock Report, we are going to take a look at Stella Jones Inc. (SJ.TO) which we have not highlighted since all the way back in August of 2020. Stella Jones Inc. which produces, markets, and sells pressure treated wood products in Canada and the United States, has recently moved back in the Favored Zone having risen in the SIA S&P/TSX Composite Index Report moving up 22 spots in the last month and 43 spots in the last quarter. Currently the shares occupy the 53rd spot in the Index.
Stella Jones shares have continued its relative strength move that saw it climb out of the Unfavored Zone in August and then moving into the Favored Zone on November 22, 2022, at a price of $47.55. Today, the shares are at $48.98.
In looking at the Candlestick Chart, we see that the shares found a bottom at approximately the $30.00 area back in June of this year and a steady uptrend materialized up untill September. From September to early November the shares paused and traded in a sideways consolidation range between $37.00 and $42.00. Since early November, a new uptrend ensued as the shares managed to break out of its sideways range and the shares now look to start another leg higher. The next area of resistance looks to be around the $52.00.
In the attached Point and Figure chart, we see Stella Jones shares have been very strong since finding a bottom in July at the $30.00 area. A column of X’s consisting of 11 boxes ensued before a mild pullback materialized in September. Then a new upleg ensued which now consists of a rising column of X’s at 13 boxes.
Most notedly, Stella Jones recently broke above previous resistance at the $48.25 level from 2018. The next area of resistance is now at $52.23. On the downside, support can be found at its 3-box reversal of $44.58 and, below that, $41.18.
With an SMAX of 10 out of 10, SJ.TO is showing near term strength across the asset classes
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