Some of Canada’s banks have started to attract increased interest and their relative strength has started to increase ahead of next week’s quarterly earnings reports.
Canadian Western Bank (CWB.TO), for example, has climbed 21 spots within the SIA S&P/TSX Composite Index Report in the last month and yesterday it returned to the Green Favored Zone in 57th place.
A major, multi-year breakout is underway in Canadian Western Bank (CWB.TO) shares. For the last year, the shares have been clawing back their COVID Crash losses, advancing in a rising channel of higher highs and higher lows. This month, the shares have completed their recovery and have broken out to the upside, clearing $35.00 to complete a massive Ascending Triangle base, and breaking out to their highest level in over three years, signaling the start of a new advance.
Measured moves from previous trading ranges suggest potential upside resistance points on trend near $38.50, $42.50, $47.50, and then the $50.00 round number. Initial support appears at the 50-day moving average near $33.35.
Since bottoming out in March of 2020, Canadian Western Bank (CWB.TO) shares steadily clawed back all of their losses from the COVID Crash and are currently bumping up against highs dating back to 2017. Currently the shares are on active Double Top and Triple Top breakouts. A close above $36.45 would confirm that the current primary uptrend remains intact and signal that a new upleg has started.
Due to the steady nature of the advance over the last year, vertical and horizontal counts out of patterns and poles indicate several potential upside resistance tests on trend including $38.65, $41.85, $46.20 and the $50.00 round number. Initial support appears near $33.00 based on a common 3-box reversal.
With its bullish SMAX score increasing to 9, CWB.TO is exhibiting near-term strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.