Gildan Activewear (GIL.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since July of 2019 after moving up 5 spots yesterday and 16 spots in the last month. Gildan currently sits in 5th place in the SIA S&P/TSX 60 Index Report near the top of the Green Favored Zone.
Since bottoming out back in March, Gildan Activewear (GIL.TO) has been under steady accumulation, climbing in a step pattern of rallies followed by consolidation at higher levels, completing a series of bullish Ascending Triangle breakouts, building an uptrend line of consistently higher lows, and holding above their 50-day and 200-day averages following breakouts.
Next potential resistance on trend appears in the $30.00 to $31.00 area where a round number, measured move and a previous gap cluster, followed by the $35.00 to $36.00 area where a round number and an old support level converge. Initial support appears in the $25.00 to $26.00 zone between a round number and the 200-day moving average.
Back in the spring, Gildan Activewear (GIL.TO) shares completed a major selloff, which had started in the summer of 2019, and staged an initial recovery bounce. Following a few months of base-building, a new recovery trend got underway in earnest in August with a bullish Spread Double Top breakout. Since then, with the exception of a brief 3-box correction, the shares have been steadily climbing and recently completed a bullish Double Top to signal the start of a new upleg and confirm that its current uptrend continues.
Next potential upside resistance tests on trend appear near $30.40, $32.90, and $36.30, based on a series of vertical and horizontal counts. Initial support appears near $25.40 based on a 3-box reversal, then the $25.00 round number.
With a perfect SMAX score of 10, GIL.TO is exhibiting near-term strength across the asset classes.
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