TransAlta Corp. - (TA.TO) - June 8, 2023
Electric power producer TransAlta Corp. (TA.TO) has been climbing back up the rankings in the SIA S&P/TSX Index Report since April. A nine-month stay in the red zone ended in May, and TA.TO has reached the top of the Yellow Neutral Zone, one position outside of the green zone where it has not been since August. After climbing 11 spots yesterday and 71 places in the last month, TransAlta currently sits in 59th position.
A major breakout is underway in TransAlta (TA.TO) shares. The recent breakout over $13.00 has completed a classic bullish “W” shaped bottom pattern. Accumulation started back in March when the shares successfully retested their July lows, and this breakout confirms that a new recovery trend has commenced.
Initial upside resistance appears at the July 2022 peak near $15.00, followed by $15.50 and $18.00 which are based on measured moves. Initial support appears near $12.80.
Back in March, TransAlta (TA.TO) successfully retested support near $10.60, ending an eight-month downtrend. Since then, the shares have been consistently recovering, completing a bullish Double Top and two bullish Spread Double Top breakouts without even a 3-box correction along the way.
Currently trading at the highest level since last summer, next potential resistance for TransAlta appears at the July peak near $14.85, followed by $15.45 and $18.45 which are based on horizontal counts. Initial support appears near $12.40 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, TA.TO is exhibiting strength against the asset classes.
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