Boosted by stronger than expected earnings, electronics manufacturer Celestica (CLS.TO) jumped 24 spots in the SIA S&P/TSX Composite Index Report yesterday and returned to the Green Favored Zone.
Celestica (CLS.TO) has staged a double breakout this week, first clearing $10.25 to complete a bullish Ascending Triangle pattern, and then clearing $11.00 to snap out of a long-term downtrend. Combined, these breakouts signal the start of a new uptrend with next potential upside resistance tests near $12.00 and $15.00 on trend. Initial support appears between the $10.00 round number and the $10.25 breakout point.
Celestica (CLS.TO) shares have been steadily recovering since March, with upward pulses followed by corrections that keep bottoming out at higher levels indicating underlying accumulation continues. Yesterday, the shares broke through a downtrend resistance line, confirming the recent completion of a bullish Double Top pattern and signaling the start of a new advance.
Next potential upside resistance tests appear near $12.80, $13.85 and $15.00 on trend based on a combination of vertical counts and previous support/resistance points. Initial support appears near $10.30 based on a 3-box reversal.
With its bullish SMAX increasing to 7, CLS.TO is exhibiting near-term strength across the asset classes.
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