Celestica Inc. - (CLS.TO) - May 30, 2023
Electronics manufacturer Celestica (CLS.TO) has turned around dramatically since we last mentioned it in the April 26 edition of the Daily Stock Report. In the last month, CLS.TO has jumped 104 positions in the SIA S&P/TSX Composite Index report, including a gain of 12 spots yesterday to 26th place, and it has returned to the Green Favored Zone from a dip down into the red zone.
Celestica (CLS.TO) staged a big breakout yesterday, with a breakaway gap clearing $16.00 and the 50-day moving average and follow-through carrying the shares up toward $17.50 and snapping a downtrend line. This action indicates that the shares have come under renewed accumulation and that an upswing has started in earnest.
Initial upside resistance may appear near the February highs in the $18.50 to $19.00 area, followed by the $20.00 round number and $22.00 based on a measured move. Initial support appears near $16.75 with the previous downtrend line reversing polarity then the 50-day average near $16.00.
The 1% chart highlights the strength of the turnaround in Celestica (CLS.TO) shares over the last month. A three-month selloff was contained by previous support near $14.25 earlier this month, and since then, the shares have been bouncing back. A bullish Double Top breakout has now extended into a bullish Spread Double Top breakout.
Initial upside resistance appears at the February peak near $18.50, followed by $18.85 and $19.40 which are based on horizontal counts, then the $20.00 round number. Initial support appears near $17.05 based on a 3-box reversal.
With a perfect SMAX score of 10, CLS.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.