SNC-Lavalin Group Inc. - (SNC.TO) - August 4, 2023
SNC Lavalin (SNC.TO) has been steadily working its way up in the SIA S&P/TSX Composite Index Report since the start of this year, after spending all of 2022 stuck in the Red Zone. In March, it returned to the Green Favored Zone for the first time since September of 2021, and has gained 37.1% since then. Yesterday, SNC.TO climbed another 9 spots to 3rd place, and it is up 29 positions in the last month. A major breakout is underway in SNC Lavalin (SNC.TO) shares. A major selloff bottomed out in the summer of 2019 and for the last four years, the shares have been building a base for recovery between $15.00 and $37.50. This week, SNC.TO has broken out to its highest level since 2019, completing a large bullish Ascending Triangle base to confirm the start of a new uptrend and begin filling in a previous gap. Potential upside resistance tests appear at the top of the previous gap near $46.50, then the $50.00 round number, and then closer to $60.00 where a measured move and a retest of the 2018 peak converge. Initial support appears near the $37.50 breakout point.
SNC Lavalin (SNC.TO) shares have been on a roller coaster ride for the last five years. Following their scandal-driven collapse back in 2019, the shares have staged several significant upswings and downswings. Since the beginning of 2023, the shares have been on an upswing completing a series of bullish patterns, including a Triple Top, a Spread Triple Top and multiple Double Tops, with each correction bottoming out at a higher low.
This month, the shares have broken through their 2021 high to trade at their highest levels since early 2019. Next potential resistance appears near $46.15 based on a horizontal count, then $50.00, where a round number and previous column highs/lows converge, and $59.70 where a vertical count and the 2018 peak align. Initial support appears near $37.85 based on a 3-box reversal and a retest of a recent breakout point.
With a perfect SMAX score of 10, SNC.TO is exhibiting strength across the asset classes.
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