Stantec Inc. - (STN.TO) - February 24, 2023
Engineering company Stantec (STN.TO) jumped 9.3% yesterday in response to a positive earnings report. Since July, when Stantec completed a move up to the Green Favored Zone from the Red Zone in the SIA S&P/TSX Composite Index Report, the shares are up 16.7%. Yesterday, Stantec finished in 27th place, up 11 positions on the day.
Stantec (STN.TO) staged a major breakout yesterday. A breakaway gap over $72.50 on a spike in volume carried the shares to new all-time highs, completing a recovery process which started back in June and signaling the start of a new uptrend. Over the eight months leading up to this momentous day, the shares had established a floor near $52.50, snapped a downtrend line, completed a bullish Golden Cross and built a new uptrend of higher lows.
Initial resistance may emerge at yesterday’s peak near $83.50, followed by $92.50 which is based on a measured move from the previous trading range. Initial support appears near the $72.50 breakout point.
After bottoming out over the summer, Stantec (STN.TO) started to come under renewed accumulation with a bullish Double Top breakout. Accumulation has accelerated since November when the shares completed a second Double Top that combined into a Bullish Catapult. Since then the shares have consistently climbed into a bullish High Pole, with a bullish Spread Double Top breakout signaling a move to new all-time highs.
Horizontal counts suggest initial resistance may appear in the $81.70 to $85.00 area, followed by $93.85 which is based on a vertical count. Initial support appears near $71.10 based on a 3-box reversal and a retest of a recent breakout point.
With a perfect SMAX score of 10, STN.TO is exhibiting strength across 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.