Auto parts producer Magna International (MG.TO) jumped 8.5% yesterday on the news that it has entered into a deal with LG Electronics to develop electric drive train technology. On this news, the shares rose 12 spots within the Green Favored Zone of the SIA S&P/TSX Composite Index Report to 21st, place, and remained in 3rd place in the SIA S&P/TSX 60 Index Report.
A breakaway gap up through $90.00 yesterday for Magna International (MG.TO) shares yesterday confirms that the uptrend which started back in March continues. This rally also confirms that other recent breakouts remain active including blasting through the top of a $55.00 to $80.00 range about a month ago, and the September completion of a bullish Ascending Triangle which had formed between $42.50 and $72.50.
Next potential upside resistance on trend appears at the $100.00 round number and then $102.50 and $105.00 based on measured moves. Initial support moves up to $90.00, then $82.00, the bottom of yesterdayās gap.
Since bottoming out back in March, Magna International (MG.TO) shares have been under steady accumulation, establishing a bullish trend of higher lows and completing a series of bullish Double Top, Spread Double Top, and Spread Triple Top patterns. Accumulation has accelerated in the last month with the shares breaking through their 2018 peak near $80.00 and continuing to climb.
Vertical counts suggest potential resistance tests near $102.90 and then $113.60. Initial support appears near $84.40 based on a 3-box reversal.
With a bullish SMAX score of 9, MG.TO is exhibiting near-term strength against the asset classes.
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