The seasonal September slide for stocks that started last week has continued into this week. Although US markets bounced back a bit yesterday, overseas markets continued to trend downward. In this issue of Equity Leaders Weekly, we look what recent technical action in Chinese stocks could mean for global equities, and at renewed interest in the uranium market.
In the last few days, shares of KLA Corp. (KLAC) have been climbing on increasing volume, a sign of renewed accumulation. Yesterday, they broke out to a new all-time high, resolving a sideways consolidation channel to the upside and also completing a bullish Ascending Triangle pattern, signaling the start of a new rally phase.
Enerplus (ERF.TO) continues to turn the corner, closing at its highest level since July with a 6.6% one-day rally on increased volume (lower circle) indicating renewed investor interest. The shares have already snapped a downtrend line which signaled the start of their turnaround.
A major breakout is underway in Tractor Supply (TSCO) shares. TSCO spent half of the spring and most of the summer stuck in consolidation mode, trading between $170 and $200. Through this period, the shares remained above their longer-term uptrend support line, keeping it intact. In the last few days, accumulation has accelerated with the shares rallying up off of $190 on increasing volumes.
A recent correction in Moderna (MRNA) shares appears to have run its course with support coming in near $350. Following a successful retest, accumulation appears to be resuming with the shares climbing back up above $450.
The coming week is pretty quiet for economic and corporate news. The European Central Bank meets today which investors may look to for hints on whether tapering is on the table for this year or not. Next week’s calendar is dominated by inflation, retail sales and industrial production reports from Canada, the US and China. In this issue of Equity Leaders Weekly, we look out monthly look at Sector Scopes and at what trading action in the alternative energy sector is telling us about investor sentiment and rolling takedowns.
Yesterday, the shares of GFL Environmental Inc. (GFL.TO) touched a new intraday high. A close above $45.80 would confirm the completion of a bullish Ascending Triangle pattern and the start of a new advance.
Casino and hotel operator Caesars Entertainment (CZR) has been climbing back up the rankings in the SIA S&P 500 Index Report in recent weeks, returning to the Green Favored Zone. Yesterday, the shares finished in 89th place, up 33 spots on the day and up 260 spots in the last month. The technical picture for Caesars Entertainment (CZR) has started to improve in recent weeks.
On Friday, the shares of Teck Resources Ltd. (TECK.B.TO) staged a significant breakout, closing above $30.00 for the first time since June, to signal that the recent consolidation phase has ended and accumulation has resumed.
Uranium miner Cameco soared up the rankings in the SIA S&P/TSX 60 Index Report yesterday, climbing directly from the red zone to the Green Favored Zone by jumping 34 spots to 8th place in a single session.
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