Milk and cheese producer Saputo (SAP.TO) spent the last five years stuck in the red zone of the SIA S&P/TSX Capped Composite Index Report. In recent weeks, however, it has rocketed back up the rankings and recently returned to the green Favored Zone for the first time since the spring of 2017. On Friday it finished in 59th place, up 11 spots in the last week.
Since bottoming out in May, Saputo (SAP.TO) shares have been steadily recovering lost ground. They snapped out of a downtrend in July and over the summer a series of higher lows has established a new uptrend. Accumulation appears to have accelerated in the last week with the shares rallying up off of $32.50 and clearing $34.00 to trade at their highest level in a year on an uptick in volume.
Next potential resistance appears in the $39.00 to $41.00 area near previous peaks and the $40.00 round number. Initial support has moved up toward $32.50 with more possible at the 50-day moving average near $31.90.
A long-term downtrend in Saputo (SAP.TO) shares that dates back to 2016 appears to have bottomed out and a recover commenced. Back in June, the shares dropped toward $24.00 but then turned upward and haven’t looked back. Over the last three months, the shares have completed bullish Double Top and Spread Double Top breakouts that have extended into a bullish High Pole. Last week, SAP.TO snapped a downtrend line, confirming that its current advance continues.
Next potential upside resistance may appear near $36.70 or $41.35 based on previous column highs. Initial support appears near $31.95 based on a 3-box reversal.
With a perfect SMAX score of 10, SAP.TO is exhibiting 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.