goeasy Ltd. (GSY.TO) - December 27, 2023
DAILY STOCK REPORT: GOEASY CLIMBS TOWARD THE TOP OF THE GREEN FAVORED ZONE
At SIA Charts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone.
goeasy Ltd. (GSY.TO) is a non-traditional Canadian lender, specializing in lease-to-own and point-of-sale financing for individuals. Back in October, the shares were in the red zone of the SIA S&P/TSX Composite Index Report. For nearly two months now, the shares have been steadily climbing up the relative strength rankings finishing Friday in 2nd place after rising 49 positions in the last month.
Changes in goeasy’s relative strength have enabled investors to manage risk in the stock and take advantage of opportunities over the course of this year. While the shares were flat between entering the red zone in March and leaving the red zone in May, avoiding the red zone enabled investors to sidestep a 19.4% loss while in the red zone. Between returning to the yellow zone in May and leaving the Green Zone in September, the shares gained 7.8%. Between leaving the Green Zone in September and leaving the red zone in November, GSY.TO lost 4.2%. Since leaving the red zone in November, the shares are up 37.6%, including a gain of 25.2% since they returned to the Green Favored Zone.
Candlestick Chart Breaks Out of a Big Base:
goeasy (GSY.TO) spent 18 months stuck in a sideways range between $90.00 and $135.00, building a base for recovery from a major selloff that occurred between the fall of 2021 and the spring of 2022. In November, the shares started to climb on rising volumes, a sign of renewed accumulation.
About a month ago, the shares broke out over $135.00, completing a bullish Ascending Triangle pattern and signaling that a new uptrend was getting underway. Since then, the shares have continued to advance and now they are up nine weeks in a row.
A measured move from the base suggests next potential resistance may appear between the $175.00 round number and $180.00. Initial support appears near the $150.00 round number.
Point and Figure Chart Reaches Its Highest Level Since 2021:
goeasy, Ltd. (GSY.TO) looks like it has been riding a rocket lately, blasting off from support near $100.00 and climbing up above $160.00 in a steady High Pole advance without even a 3-box correction along the way, a sign of consistent accumulation.
Along the way, the shares have completed a series of bullish Double Top and Spread Double Top breakouts, most notably clearing $135.00 to complete a base and clearing $160.00 to reach their highest level since December of 2021.
Potential upside resistance tests appear near $170.60, where a previous support level and a vertical count converge, followed by $177.50 based on a horizontal count, and $188.40 based on a previous column high. Initial support appears between $148.55 based on a 3-box reversal, and the $150.00 round number.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, GSY.TO is exhibiting short-term strength across the asset classes.
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