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Stelco Holdings Inc. - (STLC.TO) - November 20, 2023

Hamilton steelmaker Stelco Holdings (STLC.TO) has seen its relative strength within the SIA S&P/TSX Composite Index Report improve dramatically in the last few weeks. Stelco started the year off strong, spending the first three months up in the Green Favored Zone, then drifted down into the red zone through the summer.

In the last month, Stelco has climbed 141 positions to 26th place, exiting the red zone, returning to the Green Favored Zone for the first time since March, and continuing to trend upward in the relative strength rankings. Over six months of distribution in Stelco Holdings (STLC.TO) came to an end last month when the shares completed a bullish Falling Wedge pattern and slapped out of a downleg. Since then, the shares have been consistently climbing, a sign of renewed accumulation. In particular, a breakaway gap to the upside on a big spike in volume that regained the $40.00 level and snapped a longer term downtrend line, signaled that a recovery trend was underway which continues to this day with the shares advancing on $44.00.

Based on previous highs, potential upside resistance may appear near $48.00, $52.00, or $58.00 on trend, plus the $50.00 round number. Initial support appears near the $40.00 round number, a recent breakout point.

A six-month selloff in Stelco Holdings (STLC.TO) shares was successfully contained by an uptrend support line which dates back to the July 2022 bottom. This established another higher low and kept this underlying upward trend intact. Since then, the shares have been on the rebound rallying over 28% without even a three-box correction along the way. This month, Stelco has completed a bullish Double Top breakout and snapped a shorter-term downtrend line to confirm that an upswing is underway.

Previous column highs suggest potential upside resistance tests near $47.90, $50.85 and $59.55, plus the $50.00 round number. Initial support appears near $40.85 based on a 3-box reversal, then the $40.00 round number.

With a bullish SMAX score of 7, STLC.TO is exhibiting strength against the asset classes.

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