For almost a year, athletic clothing producer Gildan Activewear (GIL.TO) has been in the Green Favored Zone of the SIA S&P/TSX 60 Index Report, gaining 85.7% over that time. Yesterday, the shares climbed up to top spot in the report for the first time after moving up 3 places on the day.
Since a downtrend that started in the summer of 2019 bottomed out in March of 2020, Gildan Activewear (GIL.TO) shares have been steadily recovering lost ground, consistently climbing in a rising channel of higher highs and higher lows, a sign of ongoing accumulation.
The shares are nearing the $50.00 round number with initial resistance possible at their 2019 high near $52.00. Following that, next potential resistance on trend appears near $60.00 where a round number and a measured move from the bullish Ascending Triangle base that was completed back in January converge. Initial support appears near $45.00.
Earlier this year, Gildan Activewear (GIL.TO) shares snapped out of a downtrend and have remained under accumulation since then, continuing an upward trend of higher column lows and positive pattern completions. This month, the shares have rebounded from a brief 5-box correction, embarking on a new upleg with the completion of a bullish Double Top breakout.
The shares are currently approaching the $50.00 round number with initial upside resistance possible at their 2019 peak near $51.75, followed by the $58.25 to $59.50 zone where vertical and horizontal counts converge. Initial support appears near $45.05 based on a 3-box reversal.
With a perfect SMAX score of 10, GIL.TO is exhibiting strength across the asset classes.
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