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Bausch Health Companies Inc. - (BHC.TO) - February 21, 2023

Bausch Health (BHC.TO) has rocketed up the relative strength rankings in the SIA S&P/TSX Composite Index Report since the beginning of this year from deep in the red zone toward the top of the Green Favored Zone. On Friday, BHC.TO finished in 6th place, up 17 spots on the day and up 85 positions in the last month.

Bausch Health (BHC.TO) shares staged a big breakout last week. After spending six months consolidating and base building in the $8.50 to $12.00 range, the shares started to attract renewed interest, launching up off ft $10.00 with a breakaway gap that broke through the 50-day average, and then blasting through $12.00 to its highest level since May to signal the start of a new uptrend.

Initial upside resistance tests appears at a previous peak near $14.50, then the $15.00 round number, and $15.50, based on a measured move. Initial support moves up to the $12.00 breakout point.

Following a big selloff and initial rebound last year, Bausch Health (BHC.TO) shares spent the last few months of 2022 base building, but accumulation has resumed since the calendar turned into 2023. Since the start of the year, the shares have rallied from near $8.50 toward $13.0-0 completing bullish Double Top and Spread Double Top breakouts along the way.

Upside resistance tests appear near $14.35 based on a previous column high, and $15.55 based on a vertical count. Initial support appears near $11.75 based on a 3-box reversal and a previous breakout point.

With its bullish SMAX score increasing to a perfect 10, BHC.TO is exhibiting strength across the asset classes.

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