Commercial printer Transcontinental Inc. (TCL.A.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index report for the first time since July after moving up 6 spots yesterday.
Back in the spring a successful retest of support near $10.00 followed by a rally that snapped a long-term downtrend line, Trancontinental (TCL.A.TO) shares have been building a base for recovery with a bullish Ascending Triangle forming. The shares have been approaching the top of the triangle recently, where a breakout would confirm the start of a new uptrend.
On a breakout, next potential resistance zones may appear between $20.00 and $21.00 where a round number and prior resistance converge, then $24.00 to $25.00 where a measured move and a round number converge. Underlying uptrend support currently appears near $15.00.
Back in June, Transcontinental Inc. (TCL.A.TO) shares completed a bullish Triple Top pattern and havenāt looked back, steadily climbing for the last three months except for one 3-box correction which ended with the shares completing a bullish Double Top pattern and resuming their upward trend.
Initial upside resistance may appear at a downtrend line near $17.75, then the $20.00 round number, $20.40 where previous column highs/lows cluster, and $21.20 based on a horizontal count. Initial support appears near $15.45 based on a 3-box reversal.
With a bullish SMAX score of 9, TCL.A.TO is exhibiting near-term strength against the asset classes.
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