Prudential Financial (PRU) shares appear poised for a breakout. In a normal consolidation phase, the shares have been trending sideways in a $93.50 to $108.50 trading range since May, digesting an advance made earlier in the year. Last month, an attempt by bears to push the shares back under $100.00 support was quickly rejected and the shares have rebounded to retest the top of their current trading range.
It has been another rough week for equity markets around the world with big daily and even intraday swings in both directions. That being said, so far indices have held above key support levels, such as 2,100 for the Russell 2000, suggesting that we are currently in a downswing within a broader sideways trend. In this issue of Equity Leaders Weekly, we look at recent strength in the natural gas price and at renewed interest in US Financials as the start of earnings season approaches.
A major breakout is underway in Bank of America shares. Since June, the shares have been trading between $36.50 and $43.50, consolidating gains made earlier in the year. Corrections were contained above the previous breakout point at the February 2020 peak, a sign of continuing underlying support. In the last couple of weeks, accumulation has resumed with the shares rallying up off a higher low. This week, the shares have broken out to a new all time high and have completed a bullish Ascending Triangle pattern, signaling the start of a new rally phase.
Oil producer Whitecap Resources (WCP.TO) continues to climb within the Green Favored Zone of the SIA S&P/TSX Composite Index Report. Yesterday it finished in 11th place, up 4 spots on the day and up 154 positions in the last month as energy stocks continue to attract support from rising oil and natural gas prices.
Live Nation (LYV) shares staged a major breakout on Friday, blasting through the top of a $75.00 to $95.00 sideways trading range which had persisted for the last six months. The shares also reached a new high and completed a bullish Ascending Triangle breakout on a jump in volume, indicating increasing investor interest.
Over the course of the spring and summer, Fertilizer producer Mosaic Company (MOS) price action trends downshifted from an upward trend into a sideways consolidation range between $28.25 and $38.25. Following two successful tests of support at the bottom of this range, the shares have been on an upswing lately, breaking through $34.25, which has become new support, and rallying up above $35.00.
While much of the media focus in the last trading week of the quarter has been on the seasonal selloff across world stock markets, this trading action comes as part of a wider shift in capital flows and investment thinking. In this issue of Equity Leaders Weekly, we look at crude oil approaching a key technical turning point and at the implications of rising US traded interest rates.
A major breakout is underway in Vermilion Energy (VET.TO) shares which recently broke through $11.50 to reach their highest level since early 2020 and ending a six-month sideways consolidation phase.
The recent increase in relative strength for the Energy sector relative to other industries was particularly clear yesterday when several Energy stocks were among the few gainers in yesterday’s market selloff. MEG Energy (MEG.TO), for example, with a gain of 1.25% yesterday and 19.8% in the last week, continued to move up within the Green Favored Zone of the SIA S&P/TSX Composite Index Report. Yesterday MEG.TO finished in 9th place up 3 spots on the day and up 100 places in the last month.
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