SIACharts Logo

Commentary >

Russel Metals Inc. - (RUS.TO) - December 30, 2020 

Steel distributor Russell Metals (RUS.TO) has been trending upward in the SIA S&P/TSX Composite Index Report since May when a long-term downtrend bottomed out. Yesterday, RUS.TO returned to the Green Favored Zone for the first time since June of 2018 after climbing 3 spots in one day and 12 spots over the last month. A major breakout is underway in Russel Metals (RUS.TO). The shares spent 2019 trending downward and then the big market crash earlier this year flushed out the remaining weak hands in a big selling climax. Since March, the shares have been trending back upward but accumulation has really picked up in recent weeks.

A late summer consolidation not only provided the shares with a needed rest, it also carved out the right shoulder of a large bullish Reverse Head and Shoulders base pattern. Since October, the shares have been steadily climbing and generating positive technical signals, first, snapping out of a long-term downtrend, and more recently, completing the base with a breakout over the $21.50 neckline; a level which now reverses polarity to become initial support.

Upside resistance tests on trend may appear near the $25.00 or $30.00 round numbers, the previous peak near $26.50 or a measured $27.50.

Back in September, Russell Metals (RUS.TO) shares broke out of a downtrend which had dated back to 2018, then consolidated its gains for two months. In November, accumulation accelerated with the shares completing a bullish Triple Top breakout and continuing to climb, knocking down previous column highs on its way back above $22.50 for the first time in two years.

Next potential upside resistance appears near $25.00 where a round number and horizontal count converge, followed by the previous high near $26.40, then the $30.00 to $30.90 zone where a round number and horizontal count cluster. Initisl support appears near $20.80 based on a 3-box reversal, then the $20.00 round number.

With a perfect SMAX score of 10, RUS.TO is exhibiting near-term strength across 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.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.