In the last week, The North West Company (NWC.TO) has soared 60 spots in the SIA S&P/TSX Composite Index Report climbing from the red zone to the top of the Yellow Neutral Zone, one spot outside of the Green Zone.
Since bottoming out in March, shares have been under renewed accumulation. Back in June, they broke out over $27.50, which reversed polarity and became support. This week, the shares have broken through $31.50 to a new high, signaling the start of a new upleg.
Based on measured moves, potential upside resistance appears near $35.50, $38.50, $39.50, and $43.50 on trend, along with the $40.00 round number. Initial support appears near the $31.50 breakout point, then the $30.00 round number.
It has been quite a year for The North West Company's (NWC.TO) shares, plunging from a high near $30.00 to a low near $16.00 between September 2019 and March 2020, then clawing all of those losses back and completing a big round trip by August. Recently, the shares broke out over $31.50 to a new high, completing a bullish Double Top pattern and confirming that the long-term underlying uptrend has resumed.
Next potential upside resistance on trend appears in the $39.00 to $40.65 area where vertical and horizontal counts converge with the $40,00 round number. Initial support appears near $31.40 based on a 3-box reversal.
With a bullish SMAX score of 9, NWC.TO is exhibiting near-term strength against the asset classes.
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