Convenience store company Alimentation Couche-Tard (ATD.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since March of 2020, continuing a steady climb back up the rankings that stared deep in the red zone in January of 2021. On Friday, ATD.TO finished in 57th position up two places on the day and up 114 spots in the last month.
A major breakout is underway in Alimentation Couche-Tard (ATD.B) shares. Back in July of 2021, the shares completed a bullish Ascending Triangle pattern with a breakout over $45.00, a level that reversed polarity and became support while the shares moved into a higher range between there and $53.00. Last month, the shares successfully retested channel and long-term uptrend support and haven’t looked back since, soaring to new all-time highs above $55.00 and signalling the start of a new upleg by blasting through $53.00 which may reverse polarity to become initial support.
Based on measured moves from recent trading ranges, upside resistance on trend may appear near $60.00-$61.00, then $69.00 and $75.00 on trend. Additional support appears near the $50.00 round number.
Slow but steady. Since at least 2015, Alimentation Couche-Tard (ATD.B) has been under accumulation, advancing in a long-term Rising Channel of consistently higher highs and higher lows. Back in March, a correction ended with a successful retest of support at previous lows near $45.55 and above the long-term uptrend support line. Since then, accumulation appears to have resumed with the shares rallying to new all-time highs and completing a bullish Double Top pattern.
A horizontal count suggests potential upside resistance may appear near $66.34, followed by the $69.00 to $70.40 area where two vertical counts converge. Initial support appears near $52.30 based on a 3-box reversal.
With a bullish SMAX score of 9, ATD.TO is exhibiting strength against the asset classes.
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