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Canadian Tire Corp - (CTC.A.TO) - April 10, 2023

Specialty retailer Canadian Tire (CTC.A.TO) has rapidly risen up the rankings in the SIA S&P/TSX Composite Index Report recently. CTC.A.TO has run up from deep in the red zone to the top of the Yellow Neutral Zone and is two spots away from returning to the Green Favored Zone for the first time since June of 2021. Canadian Tire currently sits in 61st position, up 5 spots on the day and up 32 places in the last month.

Late last year, a downtrend in Canadian Tire (CTC.A.TO) shares bottomed out over several weeks near $140.00. Since the start of 2023, the shares have been under renewed accumulation, snapping two downtrend lines and establishing a new uptrend of higher lows. Recently, the shares have regained the $180.00 level for the first time in a year, indicating continued investor interest.

Upside resistance tests appear near $190.00, and the $200.00 round number based on previous peaks. Initial support appears near $174.00, the most recent breakout point.

Back in January, an eighteen-month downtrend in Canadian Tire (CTC.A.TO) shares bottomed out in a Bear Trap, where they broke down by one row, reversed upward and have not looked back since. Over the last 2-3 months, the shares have steadily recovered lost ground, completed bullish Double Top and Spread Double Top breakouts, and snapped a downtrend line.

A horizontal count suggests initial resistance may appear near $190.30, followed by the $200.00-$202.00 area where a round number, horizontal count, and the June 2021 peak cluster. Initial support appears near $165.65 based on a 3-box reversal. With a bullish SMAX score of 7, CTC.A.TO is exhibiting strength against the asset classes.

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