In today’s edition of the Daily Stock Report, we take a look at AltaGas Ltd. (ALA.TO). This is the first time we have ever looked at AltaGas in our Daily Report.
AltaGas Ltd. owns and operates a diversified basket of energy infrastructure businesses. Its business is conducted in four segments: Midstream, power, utilities and corporate. AltaGas Ltd. moved into the Favored zone of the SIA TSX Composite Index Report back on April 27, 2021, at a price of $22.45. Today the shares are at $26.15 representing a 16.48% price appreciation in a little over 3 months.
Currently, it occupies the #16 spot in the SIA TSX Composite Index Report. In analyzing the Candlestick Chart, we see the shares have been in a steady uptrend since the market bottom back in March of 2020. They recently broke above some significant long term resistance at approximately the $25.50 price level signaling a potential move higher to the old high which we haven’t seen since 2015 at the $31.50 area which is now new resistance based on a measured move and its prior 2015 high.
In the attached Point and Figure chart at a 2% scale, we see the shares recently broke above the $25.88 price level which has been significant resistance since late 2017 and early 2018. The shares are now exhibiting a positive Double Top pattern. Resistance can now be found at the $30.00 round number, and above that, $32.18. To the downside, support is at the 3 box reversal level at $24.39 and, below that, $23.44 with further support at $20.41.
With an SMAX of 10 out of 10, AltaGas (ALA.TO) is exhibiting near term strength against all the asset classes.
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