Sysco, a distributor of food and kitchen equipment to restaurants, has been steadily climbing up the rankings in the SIA S&P 500 Index Report since the beginning of this year, recently returning to the Green Favored Zone. Yesterday, it finished in 47th place, up 2 spots on the day and up 71 positions in the last month.
A look at the slope of the 50-day moving average indicates that after climbing through most of 2021 and early 2022, Sysco (SYY) shares consolidated in a sideways range through the second half of 2021, and since the start of this year, they have started to climb once again. A few weeks ago, Sysco successfully retested support at the bottom of its current $75.00 to $90.00 trading range. At that point and since then, the shares have also continued to successfully hold above their long-term uptrend support line indicating continuing accumulation.
A breakout over $90.00 would signal the start of a new upleg with next potential resistance in the $100.00 to $105.00 area based on a round number and a cluster of measured moves. Initial support appears at the uptrend line near $80.00.
Sysco (SYY) shares appear to be on an upswing this month, having recently broken out of a symmetrical consolidation triangle of higher lows and lower highs. Sysco has also completed a bullish Double Top pattern on the 2% chart and a bullish Spread Triple Top pattern in its 1% chart. That being said, it still faces initial resistance near its May peak and the $90.00 round number that it would need to overcome to confirm that its primary uptrend has resumed.
On a breakout, next potential resistance on trend appears near the $100.00 round number, followed by $105.35 and $111.80 which are based on a combination of vertical and horizontal counts. Initial support appears near $78.25 based on a 3-box reversal.
With a bullish SMAX score of 9 SYY is exhibiting strength against the asset classes.
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