Energy producer ARC Resources (ARX.TO) recently returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report and continues to rise up the rankings. On Friday it moved up another 10 spots to 28th place and it is up 27 spots in the last month.
ARC Resources (ARX.TO) shares have started to attract new interest, climbing on increased volume. On Friday, they broke out of a $5.60 to $6.80 trading range which had been in place since the shares snapped out of a downtrend and cleared $6.00 last summer.
The shares are currently bumping up against $8.00, a long-term support/resistance level and measured test where a breakout would complete a bullish ascending triangle base and confirm the start of a new uptrend. Should that occur, measured moves and previous peaks suggest potential upside resistance on trend near $9.20, then $10.00 round number, the $10.40 to $10.80 area and $13.00 on trend. Initial support appears at the $6.80 recent breakout point.
Accumulation in ARC Resources (ARX.TO) shares continues with a breakout over $7.40 completing a bullish Double Top, adding to the completion of a bullish Spread Double Top in January and the snapping of a downtrend line back in October.
Currently the shares are bumping up against $8.00 resistance where previous column highs/lows and a round number converge. A breakout would confirm that the current upward trend continues with next potential resistance near $9.15 and the $9.90 based on vertical counts, plus the $10.00 round number. Initial support appears near $7.20 based on a 3-box reversal and a retest of a recent breakout point.
With its bullish SMAX score increasing to 9, ARX.TO is exhibiting near-term strength against the asset classes.
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