Celestica Inc. - (CLS.TO) - April 26, 2023
Electronics manufacturer Celestica (CLS.TO) has been sliding back down the rankings in the SIA S&P/TSX Composite Index Report for about a month now. Yesterday, it dropped back down into the Yellow Neutral Zone for the first time since October. Currently sitting in 65th position, CLS.TO fell 10 spots yesterday and it is down 44 places in the last month.
Celestica (CLS.TO) staged a major breakdown yesterday taking out $16.00, a key support/resistance level to complete a bearish Descending Triangle which has been forming since the peak back in February. In addition to starting a downtrend of lower highs, after the shares broke down below their 50-day moving average they retested it as new resistance before turning down again, a bearish sign.
A test of the 200-day moving average suggests initial support may emerge near the $15.00 round number, followed by the $14.00 to $14.25 area based on a measured move and previous support, followed by the October bottom in the $11.50 to $12.00 area. Initial resistance appears at the $16.00 breakdown point, then a downtrend line near $17.00.
This 1% chart highlights the technical downturn in Celestica (CLS.TO) shares over the last two months. A High Pole rally peaked back in February near $18.50. Since then, the shares have fallen under distribution, establishing a new downtrend of lower highs and completing a series of bearish Double Bottom breakdowns.
With the last bounce only being 3 rows, the recent Double Bottom breakdown has also completed a Bearish Catapult and has signaled the start of a new downleg. Vertical and horizontal counts suggest potential downside support near $14.70, then $13.85 on trend, along with $13.30 which is based on a previous column low. Initial resistance on a bounce may emerge near $16.25 based on a 3-box reversal and a retest of a recent breakdown point.
With a bearish SMAX score of 5, CLS.TO is exhibiting weakness against the asset classes.
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