Daily Stock Report

Hydro One Ltd. - (H.TO) - August 3, 2022

Electricity transmission and distribution utility Hydro One Ltd. (H.TO) shares have been steadily moving back up the rankings in the SIA S&P Capped Composite Index Report over the past quarter improving 26 spots to hold the 27th spot within the report. The shares got off to a slow start since entering the green favored zone on April 26th, 2022 however patience has paid off as a breakout of the recent range at the end of last week signals the beginning of another potential leg higher.  

First quarter earnings came out at 0.52 which was a 7.22% surprise compared to the estimate of 0.48. However this earnings beat did little to fuel a rally in the share price. Instead price declined from a May 25th high of $35.82 to a low on June 17th of $32.44. From that low shares have rallied 12.21% and broken out from those prior highs made in May. 

Initial upside resistance appears at the recent highs of $36.44 and above that at the $38 round number based on measured moves from previous trading ranges. Price currently is sitting just above prior resistance which now should act as support at $35.15. and below that there is minor support at the $34 round number as well as at the trendline shown on the candlestick chart.

Hydro One Ltd. (H.TO) shares recently formed a rare bullish triple top which was confirmed with a move above last week. Price has been in a range since the last breakout which was 5 months ago in March of 2022 which saw the completion of a bullish double top pattern. 

Prior resistance should act as support at $35.46 and above that vertical counts suggest the next potential resistance may appear near the $38 round number. Initial support appears near $$34.42 based on a 3-box reversal and below that at $32.42

With a perfect bullish SMAX score of 10, H.TO is exhibiting strength against the asset classes. 

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