Imperial Oil Ltd - (IMO.TO) - March 12, 2024
With the price of Crude Oil on the rise in recent weeks, Energy stocks have been attracting renewed attention from investors and moving back up in broad market relative strength rankings.
Imperial Oil (IMO.TO), for example, has been climbing back up the rankings in the SIA S&P/TSX 60 Index Report for the last month, over which time it moved up 11 spots. Yesterday, IMO.TO returned to the Green Favored Zone for the first time since October after moving up another 2 positions to 15th place.
A major breakout is underway in Imperial Oil (IMO.TO) shares. For nearly six months, IMO.TO was stuck in a sideways trading range between $72.00 and $74.00. Starting in February, the shares have been under renewed accumulation lately, consistently climbing in a Rising Channel of higher highs and higher lows.
Earlier this month, IMO.TO broke out over this range, retested trend support and then launched into a new upleg. Yesterday, the shares completed a new all-time high through a Bullish Engulfing candle on a jump in volumes, a sign of continued interest from bullish investors.
A measured move from the recent trading range suggests potential upside resistance tests may appear near $96.00, then the $100.00 round number. Initial support appears in the $82.00-$84.00 area around recent support/resistance levels.
Imperial Oil (IMO.TO) has been under consistent accumulation since the March 2020 market bottom. The shares rallied and broke out last summer, then paused between October and February in what now appears to be a normal correction that bottomed out at another higher low. Moving into March, the shares have started to rally again, completing a bullish Triple Top breakout and rallying to new all-time highs.
Next potential upside resistance appears in the $98.55 to $104.60 zone where a number of vertical and horizontal counts cluster around the $100.00 round number. Initial support appears near $80.85 based on a 3-box reversal.
With a perfect bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, IMO.TO is exhibiting short-term strength across the asset classes.
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