Today’s Labrador Iron Ore (LIF.TO) chart is a good example of why we look to both Point and Figure and Candlestick for insights into market trends and support/resistance levels. The late summer selloff in LIF.TO shares was, in fact, contained by a long-term uptrend support line which dates back to the March 2020 market bottom. Since then, accumulation has resumed and the shares have been steadily recovering lost ground in a Rising Channel of higher highs and higher lows.
Back in October, a downward trend in Caterpillar (CAT) bottomed out with a series of successful support tests near $190.00. In recent weeks, the shares have snapped out of a downtrend, regained and held above their 50-day moving average, launched up off of the 50-day average and blasted through $220.00 to complete a bullish Ascending triangle pattern and have continued to climb. Since the start of this month, bullish signals have occurred on increased volumes, a sign of renewed accumulation.
Earlier this month, Baytex Energy (BTE.TO) returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report and has continued to steadily march up the rankings. Yesterday it finished in 9th place, up 1 spot in the day and up 29 positions in the last month.
Back in December, a correction in National Bank of Canada* (NA.TO) shares was contained by support at a previous low near $93.25. Since then, the shares have been bouncing back and their technical situation has improved. Last week, the shares regained their 50-day moving average near $99.00 (which reverses polarity to become initial support and then the $100.00 round number
Insurance companies have been attracting renewed interest along with banks lately. Yesterday, MetLife (MET) returned to the Green Favored Zone of the SIA S&P 100 Index Report for the first time in about six months, continuing an upswing in the rankings which started in August. Yesterday the shares finished in 25th spot, up 4 places on the day and up 15 positions in the last month.
With crude oil and natural gas prices on the rise again, and winter drilling season underway, oilfield service companies have been attracting renewed interest from investors. Halliburton (HAL) recently returned to the Green Favored Zone of the SIA S&P 500 Index Report for the first time in two months, bouncing back from a drop into the red zone. Yesterday, HAL finished in 78th place, up 16 spots on the day and up 206 positions in the last month.
Over the last four months, shares of copper producer First Quantum Minerals (FM.TO) have snapped out of a downtrend and established higher support near $26.50. Yesterday, FM.TO broke out over $31.00 on increased volumes, signaling renewed investor interest and the start of a new upleg that has already moved to within striking distance of the May peak near the $35.00 round number.
Banks on both sides of the border have been climbing and moving up in the relative strength rankings this week heading into the start of US Bank Earnings Week on Friday. Yesterday, CIBC* (CM.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report from a short dip into the yellow zone. Yesterday it finished in 51st place, up 5 spots on the day and up 16 positions in the last month.
For over a year, Bank of Montreal (BMO.TO) shares have been under steady accumulation, climbing in a step pattern of rallies followed by pauses at consistently higher levels. On Friday, the stock broke out to a new all-time high, signaling the start of a new rally phase, and confirming that its underlying uptrend remains intact. A measured move from previous consolidation ranges suggests potential upside resistance near $150.00 on trend. Initial support moves up to the 50-day average near $137.50.
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