Whitecap Resources Inc. - (WCP.TO) - July 6, 2021 (Daily Stock Report)

by SIACharts.com

Energy producer Whitecap Resources (WCP.TO) has been steadily climbing within the Green Favored Zone of the SIA S&P/TSX Composite Index Report. Yesterday, the shares finished in 33rd place up 1 spot on the day and up 17 positions in the last month. Since we last mentioned Whitecap in the December 17th issue of the Daily Stock Report, the shares are up 33.4%.

Earlier this year, Whitecap Resources (WCP.TO) snapped out of a downtrend which had started back in 2017. Since March, however, the shares have been consolidating previous gains in the $5.00 to $6.75. Through this pause, a bullish ascending triangle of higher lows below $6.75 has been building, a sign that underlying accumulation remains intact.

A breakout over $6.75 would complete the triangle and signal the start of a new upleg. Should that occur, initial resistance may appear near $8.00, a round number where the shares previously struggled, then $8.50 based on a measured move. Initial support appears near the $6.00 round number.

Since a March correction in Whitecap Resources (WCP.TO) was contained at a higher low, the shares consolidated for a few weeks, then started to trend back upward, completing a bullish Triple Top breakout in May. Currently, the shares are approaching initial resistance between $6.70 and $6.90. Breakouts there would complete bullish Double Top and Spread Double Top patterns, confirming that the underlying uptrend has resumed. Should that occur, next potential resistance on trend may appear near $7.75, a previous column high, then the $8.85 to $9.25 area based on vertical and horizontal counts. Initial support appears near $5.95 based on a common 3-box reversal and a recent column low. With a perfect SMAX score of 10, WCP.TO is exhibiting strength across 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.

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