We last looked at Aritzia Inc. (ATZ.TO) on Oct 15, 2020 when it just entered the Favored Zone of the SIA S&P/TSX Composite Index Report at a price of $22.16. Since that time the shares have continued to remain strong and currently sits in the #6 spot in the Report after spending a brief period of time in the Neutral Zone while still holding its positive SMAX score back in June. With yesterday’s closing price of $40.52 this represents an 82.8% increase since we last commented on it 10 months ago.
Aritzia Inc., a specialty retailer, is an integrated design house of exclusive fashion brands. The company designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. In looking at the Candlestick chart, we see that the shares peaked at the $40.00 area, pulled back somewhat to the $38.00 area but reversed to the upside and is now on the verge of another new all-time high. Support can now be found at the $37.50 round number and, below that, approximately the $32.50 level. Resistance is at around the $43.00 level if it can carry through well above the level it is at now.
In the attached Point and Figure Chart at a 2% Scale, we see the shares are now exhibiting a positive Double Top bullish pattern after it broke to the upside when it closed above $37.59 earlier this summer. To the upside, the shares are right at its near-term resistance level at $40.68 and, above that, $44.04 based on a measured move. Support can be found at its 3 box reversal level of $36.85 and, below that, $34.04 with further support at $31.45. With a SMAX of 10 out of 10, Aritzia Inc. is still exhibiting near term strength against all the asset classes.
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