The technical picture for Vermilion Energy (VET.TO) continues to improve. Earlier this year, the shares completed a bullish Ascending Triangle base with a breakout over $10.00, then consolidated in a higher range between $7.00 and $11.00 for a few months. An October breakout and push toward $15.00 was followed by the recent low-volume correction where declines were contained above $11.00 as previous resistance reversed polarity to become support, a sign of continuing underlying accumulation.
Over the last several weeks, the price of lumber has been bouncing back, sparking renewed interest in forest products stocks. Interfor (IFP.TO) has returned to the Green Favored Zone for the first time in about six weeks as it roars back from a sharp but short drop down into the red zone. Since a summer retreat bottomed out in August, it has become clear that IFP.TO shares have been trending sideways since March. Recent trading indicates that accumulation has resumed and the shares could be setting up for a breakout.
Micron Technology (MU) has rebounded dramatically from is mid-October bottom. Over the last six weeks, the shares have regained and held above their 50-day average, snapped a downtrend line which completed a bullish Falling Wedge pattern cleared and retested $75.00 as support and broken through $85.00 previous resistance. Accumulation has accelerated in recent weeks with the shares gapping upward and continuing to climb on higher volumes.
The cautious turn in sentiment highlighted in last week’s edition of the Equity Leaders Weekly has accelerated in the last week with capital fleeing from equities and commodities and moving back into defensive havens including US bonds, the Japanese Yen, and gold. In this issue of Equity Leaders Weekly, we look at the state of the oil market amid recent volatility and at renewed interest in US bonds.
With a 3.1% gain on a rough day for the markets, Apple (AAPL) was the top performing stock in the NASDAQ 100 yesterday and one of only four stocks in the index to have a positive day. This outperformance propelled Apple up six spots in the relative strength rankings to 22nd place. With this move, Apple has returned to the Green Favored Zone for the first time since February.
Over the last month, semiconductor equipment producer Lam Research (LRCX) has been moving back up the rankings in the SIA NASDAQ 100 Index Report, climbing up out of the red zone and returning to the Green Favored Zone for the first time since August. Yesterday the shares finished in 24th place up 15 spots on the day and up 36 positions in the last month.
With a new COVID variant sparking renewed interest in companies who produce vaccines and treatments, Pfizer (PFE) rallied 6.1% and shot up the rankings in the SIA S&P 100 Index Report, returning to the Green Favored Zone and climbing to its highest position since January of 2019. On Friday, PFE finished in 12th place up 23 positions on the day and up 53 spots in the last month.
A breakaway gap on a big surge in volume for HP Inc. (HPQ) has driven its shares up through its April peak to a new all-time high. The technical picture for HPQ had already been improving in recent weeks with the shares snapping out of a downtrend, breaking out of a bullish Falling Wedge pattern, regaining their 50-day average and finally, completing a bullish Ascending Triangle. Combined these signals confirm that accumulation has resumed in a big way.
The tone of equity market trading over the last week or so has shifted from enthusiasm to caution. Part of this may be due to the usual US Thanksgiving week slowdown in trading activity but other factors appear to be at work as well. In this issue of Equity Leaders Weekly, we preview Canadian bank earnings week and what the price of platinum may be telling us about the future of the auto sector.
Suncor Energy (SU.TO) shares have been trending upward for a year now and continue to steadily recover. A recent correction was contained above the previous breakout point near $31.00 and this week, the shares have launched up off of that level to trade at their highest levels since 2019, a sign of continuing accumulation.
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