Heavy equipment dealer Finning International (FTT.TO) returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report yesterday. It has been moving up in the relative strength rankings since early October, bouncing back from a trip into the red zone. Yesterday it finished in 57th place, up 5 spots on the day and up 128 positions in the last month.
The technical picture for Finning International (FTT.TO) has turned increasingly bullish over the last two months. Since completing a successful retest of the July low near $23.50, FTT.TO has been under renewed accumulation. Over the last two months, a downtrend has been broken and a new uptrend of higher lows has emerged. FTT.TO also broke out of a base clearing $30.00 which has been successfully retested as new support.
A close above $32.50 would provide additional confirmation that a new upleg has commenced with next potential resistance tests on trend possible near $34.50 and $37.50 based on measured moves, then the April peak near $39.25.
A summer selloff in Finning International (FTT.TO) shares bottomed out back in September in a Bear Trap where a double bottom breakdown ended after two rows. Since then the shares reversed back upward, rallying from near $23.00 toward $33.00 without even a three-box correction, completing a bullish Double Top breakout and extending its rally into a bullish High Pole.
A horizontal count suggests potential initial resistance near $33.80, while previous column highs and lows including the April peak suggest potential resistance in the $37.30 to $38.80 zone. Initial support appears near $30.00 based on the convergence of a 3-box reversal and a round number.
With a perfect SMAX score of 10, FTT.TO is exhibiting strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.