Commercial printer Transcontinental Inc. (TCL.A.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report from a short dip into the yellow zone. The shares were previously in the Green Zone between November 16, 2020 and June 1, 2021, returning 29.0% over that time compared with an 18.2% return for the index over that same period.
Transcontinental (TCL.A.TO) has a major breakout underway this week with the shares rallying up off of $2.00, overcoming $24.50 resistance and regaining the $25.00 level on an increase in volume, all combining to indicate that accumulation has accelerated.
Initial upside resistance appears in the $28.00 to $28.50 area where the 2018 peak and a measured move converge, followed by the $30.00 round number, plus $31.50 and $35.00 based on measured moves. Initial support moves up toward the $24.50 breakout point from $22.00 support.
Since snapping out of a downtrend back in October, Transcontinental (TCL.A.TO) has been under steady accumulation, advancing through a series of high poles and positive pattern breakouts followed by periods of consolidation at higher levels. This week, the shares have embarked on a new rally phase, completing bullish Double Top and Spread Double Top breakouts and regaining the $25.00 level for the first time since 2018.
Next potential upside resistance appears at the July 2018 peak near $28.30, followed on trend by $30.65, $31.90 and $35.20 all of which are based on vertical and horizontal counts. Initial support appears near $23.70 based on a 3-box reversal.
With a bullish SMAX score of 9, TCL.A.TO is exhibiting strength against 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.