Vermilion Energy (VET.TO) continues to climb back up the rankings in the SIA S&P/TSX Composite Index Report. Vermilion recently returned to the Green Favored Zone from a summer drop down into the red zone. Yesterday the shares finished in 16th place up 27 spots on the day and up 188 spots in the last month.
A major breakout is underway in Vermilion Energy (VET.TO) shares which recently broke through $11.50 to reach their highest level since early 2020 and ending a six-month sideways consolidation phase.
This chart highlights the importance of volume in trend analysis. Back in the winter, Vermilion shares regained $10.00 on high volume, then faltered into a correction as volumes faded. In June, a low-volume attempt to break out failed. In the last month, the shares have been climbing up off of $7.00 channel support on rising volume, a sign of increasing accumulation, and successfully broke out this time.
Initial upside resistance appears near the $15.00 round number, followed by $16.00 based on a measured move from the recent trading range. Initial support appears near the $11.50 breakout point.
Back in June Vermillion Energy (VET.TO) shares had a false start, snapping a downtrend line but then faltering into a summer correction. In recent weeks, accumulation has resumed in earnest and the shares have decisively broken out to their highest levels since March of 2020. A recent breakout over $11.50 completed a bullish Spread Double Top pattern to signal the start of the current upleg.
Based on vertical and horizontal counts, initial upside resistance appears near $13.55, followed by the $14.95 to $15.25 zone around the $15.00 round number, and then near $16.20 based on a previous column low. Initial support appears near $11.55 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, VET.TO is exhibiting strength against the asset classes.
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