Stella Jones Inc. which produces, markets, and sells pressure treated wood products in Canada and the United States, has enjoyed the upside momentum the rest of the lumber space has seen, Currently up in the daily, weekly, monthly and quarterly rankings, SJ.TO now sits within the green favored zones 44th spot of the SIA S&P/TSX Capped Composite Index Report.
On July 27th, 2020, Stella Jones moved through prior resistance around $38 with conviction. After breaking this resistance SJ.TO consolidated for a few days before gapping higher on Wednesday August 5th due to an earnings report of 1.02 on an estimate of 0.74. If we are to see any kind of selling pressure in the near term, watch for potential minor support which appears near the $45 round number.
Clearing numerous points of potential resistance, Stella Jones (SJ.TO) has accelerated higher. Watch for next potential resistance at $47.64, and if that does not seem to be a barrier to this current trend, watch for resistance next around the $50 round number. If instead any broader market instability is to creep in as we move into September and downside selling pressure presents itself, watch for initial support between $44 and $44.50, after that look for support down in the $39.50-$40 range.
With its bullish SMAX Score of 8, SJ.TO is exhibiting near-term strength across the asset classes.
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