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Interfor Corp (IFP.TO) - January 10, 2024


Lumber producer Interfor Corp (IFP.TO) spent 18 months over the second half of 2022 and most of 2023 stuck in the red zone of the SIA S&P/TSX Composite Index Report. Since November, IFP.TO has been climbing back up the rankings and yesterday it returned to the Green Favored Zone for the first time since May of 2022. Interfor is currently in 57th place, up 12 spots in the last week and up 94 positions in the last month.

SIACharts relative strength rankings help investors to avoid stocks which show relative weakness. Since falling out of the Green Zone back in May of 2022, Interfor shares declined by 22.00%, in contrast with a 4.3% gain for the S&P/TSX Composite Index (TSX.I) over the same period.

Candlestick Chart Turns Technically Bullish:

It increasingly looks like nearly two years of distribution in Interfor (IFP.TO) shares has come to an end with a number of bullish technical signals emerging over the last several weeks. Back in December, the shares snapped a long-term downtrend line and completed a bullish Falling Wedge pattern. Since then, Interfor has continued to climb, establishing a higher low suggesting that a new uptrend is emerging and has started to attract support above its 10-week average. Most recently, the shares have broken out over $24.00 completing a bullish Ascending Triangle base and appear close to completing a bullish Morning Star (circled) candlestick pattern.

Initial upside resistance may appear near $28.00 based on a previous high, followed by $31.00 which is based on a measured move from the base. Initial support appears at the 10-week average near $22.75.

Point and Figure Chart Turns the Corner:

Interfor Corp (IFP.TO) shares spent nearly all of 2022 and 2023 under distribution, steadily retreating in a falling channel of lower highs and lower lows. Between August and November, the shares fell in what looks like a final shakeout of weak hands and in recent weeks, IFP.TO has started to bounce back.

In the last month, IFP.TO has established a higher low, completed bullish Double Top and Spread Double Top patterns and snapped a downtrend line. Following a minor 4-box correction, the shares have rolled back up into an X column. A close above initial resistance at the $25.00 would complete pending double top and bullish catapult patterns and confirm the start of a new uptrend.

Next potential upside resistance may appear near $27.60 based on a horizontal count, then $31.70 based on a vertical count. Initial support appears near $22.20 based on a 3-box reversal.

With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, IFP.TO is exhibiting short-term strength against the asset classes.

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