Since the end of the market sell off in late March, we have seen Lumber oriented stocks very strong of late as this sector seems to have enjoyed a very quick recovery since the end of March. The price of Lumber itself has seen a significant price recovery so it is no surprise that Norbord Inc. (OSB.TO) has also benefitted from the underlying commodities price increase.
Norbord Inc. manufactures and sells wood-based panels for retail chains, contractor supply yards, and industrial manufacturers primarily in North America and Europe.
In looking at the candlestick chart, we see that Norbord bottomed out at the $15.00 area. Today the price is at $47.30 and is on its way towards reaching its 2018 high of $58.92. The company reported better than expected earnings on August 5th by beating the estimate by 0.18/share which has given the stock increased momentum into this new upleg.
Norbord (OSB.TO) first entered the Favored Zone of the SIA TSX Composite Index Report on May 4th at a price of $22.58. Today the price of the shares is at $47.30 which represents a 110% increase since entering the favored zone. It currently occupies the 3rd spot in the TSX Composite Index Report.
The shares are quickly approaching a resistance level at its 2018 high near $52.96. If it manages to break above this level, the next area of resistance is at $60.00. To the downside, support can be found at its 3-Box Reversal level at a price of $43.45, and below that, the 50% retracement level at $37.82
With an SMAX score of 10 out of 10, Norbord (OSB.TO) is showing near term strength against all asset classes.
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