Vermilion Energy (VET.TO) continues to climb back up the rankings in the SIA S&P/TSX Composite Index Report. Vermilion recently returned to the Green Favored Zone from a summer drop down into the red zone. Yesterday the shares finished in 16th place up 27 spots on the day and up 188 spots in the last month.
A major breakout is underway in Vermilion Energy (VET.TO) shares which recently broke through $11.50 to reach their highest level since early 2020 and ending a six-month sideways consolidation phase.
This chart highlights the importance of volume in trend analysis. Back in the winter, Vermilion shares regained $10.00 on high volume, then faltered into a correction as volumes faded. In June, a low-volume attempt to break out failed. In the last month, the shares have been climbing up off of $7.00 channel support on rising volume, a sign of increasing accumulation, and successfully broke out this time.
Initial upside resistance appears near the $15.00 round number, followed by $16.00 based on a measured move from the recent trading range. Initial support appears near the $11.50 breakout point.
Back in June Vermillion Energy (VET.TO) shares had a false start, snapping a downtrend line but then faltering into a summer correction. In recent weeks, accumulation has resumed in earnest and the shares have decisively broken out to their highest levels since March of 2020. A recent breakout over $11.50 completed a bullish Spread Double Top pattern to signal the start of the current upleg.
Based on vertical and horizontal counts, initial upside resistance appears near $13.55, followed by the $14.95 to $15.25 zone around the $15.00 round number, and then near $16.20 based on a previous column low. Initial support appears near $11.55 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, VET.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.