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Canadian Pacific Kansas City Ltd - (CP.TO) - February 9, 2024

Railroad Canadian Pacific (CP.TO) drifted down the rankings in the SIA S&P/TSX 60 Index Report over the last eight months of 2023, sliding out of the green zone and falling down into the red zone. In the last month, the stock’s relative strength has started to improve and the shares have climbed back up out of the red zone into the Yellow Neutral Zone.

In the last month, CP.TO has climbed 14 positions to 23rd place. Over that time, the shares have climbed 9.15% while the S&P/TSX Composite Index has fallen 0.75%. Canadian Pacific (CP.TO) shares performed well through the 2022 bear market, steadily climbing throughout the year, then paused to consolidate gains through 2023 as broad markets recovered their previous losses. Toward the end of last year CP.TO successfully tested channel and uptrend support near $95.00 indicating that underlying support remained intact.

In the last two weeks, accumulation has accelerated. Canadian Pacific has blasted through $110.00 to a new all time high, completing a bullish Ascending Triangle pattern. A measured move suggests next potential resistance may appear near $125.00 with initial support possible near the $110.00 breakout point, or the 10-week moving average near $105.00.

Canadian Pacific (CP.TO) has been under steady accumulation for the last seven years or more with bear markets in 2020 and 2022 turning out to be little more than speed bumps on the road to consistent price appreciation.

In 2023, CP.TO paused for a test after the 2020 rally extended through 2021 and 2022. In December, the shares established support at a higher low near $94.00. This year, new interest has come in, driving the stock to new all-time highs, with a bullish Spread Triple Top breakout signaling the start of a new uptrend.

Based on vertical and horizontal counts, next potential resistance appears near $128.75 and $136.60. Initial support appears near $99.50 based on a 3-box reversal and the $100.00 round number.

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

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