Heavy equipment auctioneer Ritchie Bros (RBA.TO) has rocketed back up the rankings in the SIA S&P/TSX Composite Index Report over the last several weeks, starting deep in the red zone back in March and recently returning to the Green Favored Zone for the first time since December. On Friday it climbed another 18 positions to 59th place.
Ritchie Bros (RBA.TO) shares have come under renewed accumulation in the last week, rallying up from support in the mid $60s, snapping a downtrend line, causing a bearish descending triangle pattern to fail, and testing $80 all on an uptick in volume.
A close above $80 would confirm the start of a new upswing with next potential resistance near $92.00 then the $97.00 t $100.00 zone based on previous peaks. Initial support appears near $70.00.
For the last eighteen months, Richie Bros (RBA.TO) has been swinging up and down in a wide range between $63.00 and $98.00. Back in the winter, the shares successfully retested support at the bottom of this zone and have been working their way back upward. This month the start of a new upswing has become clearer with the shares establishing a higher low, then completing a bullish Double Top breakout. A close above $80.00 would complete a pending spread double top pattern and confirm the start of a new upswing.
Based on a combination of a previous column high and a horizontal count, initial upside resistance may appear near $93.90, followed by the late 2020 peak near $97.70. Initial support appears near $72.60 based on a 3-box reversal.
With its bullish SMAX score of increasing to 7, RBA.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.