A major breakout is underway in Welltower (WELL) shares. After steadily climbing up out of the March 2020 market bottom, Welltower had been stuck in a sideways trading range since May. Last week it broke through $90.00 to signal the start of a new advance which would be confirmed if the shares can close above their 2019 peak which was near $92.25.
A new recovery trend appears to be getting underway in Fortuna Silver Mines (FVI.TO) shares. A long-term downtrend bottomed out in a selling climax below $4.00 back in December and through January and February, the shares built a base for recovery in the $4.00 to $5.25 range. This month, the shares have turned decisively upward, completing a bullish Ascending Triangle pattern and then snapping out of a long-term downtrend.
Yesterday stock markets, particularly in Europe rebounded, while gold and oil dropped back. It remains to be seen if this was a dead cat bounce or the start of a larger reversal of fortune. In this issue of Equity Leaders Weekly, we take our monthly look at sector scopes and at inflation in grain prices.
For nearly two years, Dollarama (DOL.TO) has been under accumulation, steadily advancing in a rising channel of higher highs and higher lows. This week, the shares have broken out to a new all-time high, confirming that their upward trend remains intact. Measured moves from previous trading ranges suggest potential upside resistance near $74.50 then $80.00. Initial support appears near $65.00 then $60.00.
Benefitting from a rotation of capital into defensive sectors like Consumer Staples, grocery and drug store operator Loblaw Companies (L.TO) has returned to the Green Favored Zone of the SIA S&P/60 Index Report, continuing an upward trend in the rankings which started about a year ago. Yesterday, L.TO finished in 13th place, up 4 spots on the day and up 9 positions in the last week.
With consumer staples companies starting to attract renewed interest, personal products producer Eli Lilly (LLY) recently returned to the Green Favored Zone in the SIA S&P 100 Index Report. LLY had been steadily drifting downward in the rankings since September but has turned decisively back upward over the last few weeks. Yesterday, LLY finished in 10th place, up 3 spots on the day and up 20 positions in the last month.
Iamgold (IMG.TO) continues to build a base for recovery. Since bottoming out in September, the shares have slapped out of a downtrend and established a higher low above $3.00. In Friday, the shares closed at their highest level since May of 2021.
A major upturn is underway in Yamana Gold (YRI.TO). After spending nearly a year under distribution following its summer 2020 peak, Yamana spent the second half of 2021 building a base for recovery in the $4.80 to $5.80 range. The shares recently broke out of this base and have established higher support above $6.00 now, indicating that a new recovery trend has started.
It has been another volatile week for world markets with several sizeable reversals of sentiment day to day and sometimes even hour to hour. The war between Russia and Ukraine and the implementation of sanctions on Russia’s banking system and energy distribution has sent shockwaves through stocks, bonds, commodities and currencies. In this issue of Equity Leaders Weekly, we take a look at renewed interest in defense stocks and at the long-term context of recent action in the price of oil.
For the last two years, since the March 2020 market bottom, Cameco (CCO) has been under accumulation, advancing in a step pattern of rallies followed by periods of consolidation at higher levels. Since the latest correction ended in January, the shares have been bouncing back and accumulation appears to be accelerating with the shares gapping upward and snapping a downtrend line in the last few days.
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