Manulife Financial Corp - (MFC.TO) - December 1, 2023
While the banking sector has struggled this year, as mentioned in recent editions of the Daily Stock Report and Equity Leaders Weekly, the Insurance sector has been one of the consistently relatively strongest groups within the overall market, and the strongest subgroup within Financials this year.
Clawing back some summer slippage, Manulife Financial (MFC.TO) has been working its way back up the rankings in the SIA S&P/TSX Composite Index Report since September. This week, it returned to the Green Favored Zone for the first time since February, joining five other insurance companies in the top tier. In the SIA S&P/TSX 60 Index Report, MFC.TO has jumped seven spots in the last week, moving up toward the top of the Yellow Neutral Zone in that report.
A major breakout is underway in Manulife Financial (MFC.TO) shares. For the last several weeks, the shares had been climbing within a $23.00 to $26.50 trading range on higher volumes, a sign of increased accumulation. Yesterday, MFC.TO blasted through $26.50 to a new all-time high, signaling the start of a new upleg within a longer-term uptrend.
Measured moves from recent trading channels suggest potential upside resistance tests may emerge near the $30.00 round number, then $31.50 and $33.50. Initial support appears at the $26.50 breakout point, then the $25.00 round number.
Since the 2020 market bottom, Manulife Financial (MFC.TO) shares have been under accumulation, steadily advancing in a textbook example of a step or staircase pattern of rallies followed by periods of consolidation at consistently higher levels. Manulife has also consistently established higher lows above a 45-degree uptrend support line.
MFC.TO started the year off with a rally but had been in a consolidation phase since March. The shares have now broken out to a new all-time high, clearing $26.50, completing a bullish Spread Triple Top pattern and signaling the start of a new rally phase.
Vertical counts suggest potential upside resistance tests near $29.25 then $34.30 on trend. Initial support appears near $24.45 based on a 3-box reversal.
With a bullish SMAX score of 8, MFC.TO is exhibiting strength against the asset classes.
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