Imperial Oil Ltd. - (IMO.TO) - September 27, 2021 (Daily Stock Report)

by SIACharts.com

 

 

Energy giant Imperial Oil (IMO.TO) has returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report this week for the first time since July, as its relative strength continues to rebound from a summer dip down into the red zone. On Friday, the shares finished in 15th place, up 3 spots on the day and up 20 spots in the last month.

A summer correction in Imperial Oil (IMO.TO) has come to an end with the shares decisively turning back upward. Last week, the shares broke out over $36.50, completing a bullish Reverse Head and Shoulders base which had been forming since July. This neckline breakout builds on a successful retest of $30.00 support and the snapping of a downtrend line last month.

Next potential upside support appears near the $40.00 round number, followed by $42.50 where a measured move and the June peak converge, then $48.50 based on a measured move. Initial support appears near the $36.50 neckline breakout point, then the $35.00 round number.

 

After steadily advancing through the first half of this year, Imperial Oil (IMO.TO) shares staged a summer correction that appears to be ending. An initial retreat was contained at a higher low above $30.00 support last month. Since then, signs of accumulation have resumed but for now, the shares remain on a bearish High Pole Warning.

A breakout over the previous peak near $42.20 is needed to call off the warning and complete a bullish double top breakout which would then confirm the start of a new advance. Should that occur, next potential upside resistance on trend may appear near $44.80 based on a measured move then $48.50 based on a previous column high. Initial downside support appears near $34.60 based on a 3-box reversal and previous column lows.

With its bullish SMAX score increasing to a perfect 10, IMO.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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