Pembina Pipeline Corp. - (PPL.TO) - July 19, 2024
SIA Charts’ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company or sector’s growth.
Pembina Pipeline Corp. (PPL.TO) has once again achieved Favored Green status in the SIA S&P/TSX 60 Report, now positioned at 14th place, climbing 7 spots in the past quarter and 3 spots just in the past week. The stock has steadily strengthened since last fall, entering the Neutral Yellow Zone in early October 2023 when it traded at $40.
A review of its weekly candlestick chart illustrates this gradual ascent, characterized by a wedge consolidation pattern from 2021 to 2023. This pattern resolved as shares broke through the $46 resistance (now support), reaching the current level of $51.88. Since entering the Neutral Yellow Zone, the stock has appreciated nearly 40%, an impressive feat despite not matching the growth of companies like Dollarama or Constellation Software.
Notably, Pembina still offers a substantial dividend yield of 5.32% at today's price. The accumulation phase is evident from intermittent volume spikes in 2024, although current prices have seen volume taper off. Investing during pullbacks could enhance the risk/reward profile and further boost dividend yields for investors in this technical leader.
Analyzing the point and figure chart reveals three distinct upward movements following the 2020 collapse to $12.50. Consolidation throughout 2022-2023 established strong support at $37.09, serving as a base for breaking out of the wedge formation. In April 2024, the stock cleared significant resistance at $47.03, suggesting potential new resistance levels at $55.11 (vertical count) and $60.84 (horizontal count). Minor support levels are identified at the 3-box reversal of $47.03, followed by strong support at$46.11 and $44.32. Long-term support now lies at $37.09, a level considered distant barring a major market correction.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.