Paper producer Cascades (CAS.TO) moved up 28 spots yesterday and has jumped 96 places in the last month, driving up out of the red zone, through the yellow zone and returning to the Green Favored Zone of the SIA S&P/TSX Composite Index report for the first time since April.
Cascades (CAS.TO) has attracted significant new interest in recent days, staging a breakaway gap, then breaking out to a new high and continuing upward on increased volume. Based on measured moves from the recent $13.75 to $16.00 trading range, next potential upside resistance on trend may appear near $18.25 then $20.50, along with the $20.00 round number. Initial support appears near $15.50, then $15.00, the boundaries of the recent breakaway gap.
Since the spring, Cascades (CAS.TO) has been under steady accumulation with higher O column lows indicating a rising trend. Along the way, the shares have completed a number of bullish patterns including a Double Top, a Spread Double Top, and more recently, two consecutive bullish Triple Tops.
Potential upside resistance tests on trend include: the previous peak near $17.40, the $18.45 to $18.85 area where a number of vertical and horizontal counts cluster, and then the $20.00 round number. Initial support appears in the $15.45 to $15.75 area where a 3-box reversal and a recent breakout point converge.
With a bullish SMAX score of 9, CAS.TO is exhibiting near-term strength against the asset classes.
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