After spending the summer stuck in the red zone, Methanex Corp. (MX.TO) has been climbing back up the rankings in the SIA S&P/TSX Composite Index Report. Yesterday it returned to the Green Favored Zone for the first time since January after finishing in 56th place, up 8 spots on the day and up 156 spots over the last month.
Methanex Corp. (MX.TO) spent most of this year under distribution as shown by the steady downtrend of lower highs. In the last month, however, this trend has reversed into an upward accumulation trend. In August, the shares completed a bullish Falling Wedge pattern, snapped out of a downtrend and confirmed the breakout by regaining $45.00. The shares have continued to climb into September and yesterday, they broke out over $50.00 to confirm their uptrend continues.
Upside resistance appears at the March high near $55.50, then $60.00 where a round number and a measured move converge, then the January peak near $62.25. Initial support has moved up toward $48.00 from $45.00.
A major turnaround is underway in Methanex shares. For most of this year the shares had been under distribution, peaking at lower highs and completing a series of bearish patterns including a rare quadruple bottom. In the last few days, the shares have completely reversed course with the current high pole advance snapping a downtrend line, regaining $50.00, and completing a series of bullish pattern breakouts including a Spread Triple Top.
Based on horizontal counts, initial upside resistance appears near $55.85 and then $59.25, followed by the January peak near $61.65. Initial support appears near $47.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, MX.TO is exhibiting strength against 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.