Since November, Enerplus (ERF.TO) has been steadily climbing up the rankings in the SIA S&P/TSX Composite Index Report, rising from deep in the red zone and returning to the Green Favored Zone this week. The shares have climbed 49 spots in the last week including 13 yesterday to 12th place.
A major breakout is underway in Enerplus (ERF.TO) shares. Since May, the shares have been base building in a sideways range between $2.25 and $5.00. Starting in October, the shares have been climbing within this range, forming a bullish Ascending Triangle pattern. Last month, the shares snapped out of a downtrend and this week, the shares have completed the base with a breakout over $5.00 on volume.
Initial upside resistance appears near $7.75 where a measured move from the triangle converges with a previous breakdown point, followed by established resistance at previous highs near $9.00. Initial support moves up to the $5.00 breakout point from $4.00.
Enerplus (ERF.TO) shares have been under renewed accumulation since October, completing a series of bullish Double Top pattern breakouts and establishing an uptrend of higher lows. In recent weeks, bullish signals have continued to roll in with the shares breaking through their June peak, snapping a downtrend line, regaining $5.00 and advancing on $6.00.
Next potential upside resistance appears near $6.95 where a previous column high converges with a horizontal count, followed by $7.65, where a vertical count coincides with previous column lows. Initial support appears near $5.35 based on a 3-box reversal.
With a perfect SMAX score of 10, ERF.TO is exhibiting near-term strength across the asset classes.
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