Daily Stock Report

Canadian Western Bank - (CWB.TO) - May 21, 2021 

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.

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