Over the last four months, shares of copper producer First Quantum Minerals (FM.TO) have snapped out of a downtrend and established higher support near $26.50. Yesterday, FM.TO broke out over $31.00 on increased volumes, signaling renewed investor interest and the start of a new upleg that has already moved to within striking distance of the May peak near the $35.00 round number.
Banks on both sides of the border have been climbing and moving up in the relative strength rankings this week heading into the start of US Bank Earnings Week on Friday. Yesterday, CIBC* (CM.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report from a short dip into the yellow zone. Yesterday it finished in 51st place, up 5 spots on the day and up 16 positions in the last month.
For over a year, Bank of Montreal (BMO.TO) shares have been under steady accumulation, climbing in a step pattern of rallies followed by pauses at consistently higher levels. On Friday, the stock broke out to a new all-time high, signaling the start of a new rally phase, and confirming that its underlying uptrend remains intact. A measured move from previous consolidation ranges suggests potential upside resistance near $150.00 on trend. Initial support moves up to the 50-day average near $137.50.
Lumber and pulp producer Canfor (CFP.TO) has been steadily climbing back up the rankings in the SIA S&P/TSX Composite Index Report since bottoming out in August. Late last week, Canfor (CFP.TO) shares staged a major breakout, decisively closing above $30.00 for the first time since May and completing a bullish Ascending Triangle base pattern which had been forming since August.
The five-year weekly chart highlights just how technically important yesterday’s major breakout on volume by Crescent Point Energy (CPG.TO) is. Not only have the shares ended months of sideways consolidation, they completed a long-term base, breaking out to their highest level since the summer of 2018 and confirming a previous bullish Ascending Triangle breakout.
This year’s New Year’s rally, which extended the Santa Claus Rally that ran through the last ten days of 2021, has quickly come to a screeching halt. Investors appear to have quickly recognized that many of the issues which plagued sentiment in late November and early December not only haven’t gone away, they may actually be worsening. In this issue of Equity Leaders Weekly, we contrast recent action in the software and energy sectors as examples of rotation between equity market groups.
The technical picture for Devon Energy (DVN) shares has improved significantly over the last few weeks. Building on a bullish Morning Star candlestick reversal pattern (black circle on the chart) the shares regained their 50-day moving average and then retested it as new support. This week, a major breakout is underway with the shares soaring to new all-time highs on increased volumes.
It has been a roller coaster ride for Tesla Motors (TSLA) shares over the last six months, but through these ups and downs, some very strong technical levels and patterns have emerged. The shares had weakened in December as founder Elon Musk sold some of his shares in a planned program, but roared back to life yesterday, popping 13.5% after the electric vehicle producer announced strong Q4 sales numbers.
Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.
