Canadian Tire Corp (CTC.A.TO) - July 6, 2023
Canadian Tire (CTC.A.TO) has been increasingly climbing up the rankings in the SIA SP/TSX 60 Index Report since the start of this year. In February, it ended 16 months of being stuck in the red zone and yesterday, it returned to the Green Favored Zone for the first time since September of 2021. After climbing 5 positions yesterday, and 11 spots in the last month, CTC.A finished yesterday in 15th place.
With a close above $182.50 yesterday, Canadian Tire (CTC.A.TO) shares staged a major breakout, completing a bullish Cup with Handle base (purple arrows) consisting of a large, rounded bottom combined with a smaller rounded bottom with a higher low. The shares have been under renewed accumulation since bottoming out in January and this breakout confirms that a new uptrend has commenced.
Initial upside resistance appears in the $200.00 to $202.50 area based on a round number and a measured move. Measured moves also suggest potential resistance in the $222.50 to $225.00 zone. Initial support appears ner $180.00 then the 50-day moving average near $172.00.
An eighteen-month downswing in Canadian Tire (CTC.A.TO) shares bottomed out back in January in a Bear Trap where the shares broke down by one row and then reversed sharply back upward. Since then, the shares have been bouncing back.
Currently, Canadian Tire is testing resistance near $184.80. A close above that level would complete a bullish spread quadruple top pattern, plus a bullish catapult, and would confirm that the larger uptrend dating back to the March 2020 market bottom has reasserted itself.
Next potential resistance on a breakout may appear at the June 2021 peak near the $200.00 round number, followed by the $234.35 to $239.05 area where vertical and horizontal counts converge. Initial support appears near $167.35 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, CTC.A.TO is exhibiting strength against the asset classes.
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