Specialty hardware and building supply retailer Richelieu Hardware (RCH.TO) recently returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report and has climbed to its highest position since November of 2020. Yesterday the shares finished in 29th place, up 24 spots on the day and up 96 positions in the last month.
A major breakout is underway in Richelieu Hardware (RCH.TO) shares. The shares had spent the second half of 2021 consolidating in a sideways range between $39.50 and $46.50. The shares had successfully retested channel support back in December but accumulation resumed in earnest coming out of a hammer candle two weeks ago. The shares have advanced eight days in a row on an uptick in volume, indicating renewed investor interest.
After blasting through the $46.50 top of the channel (which reverses polarity to become initial support), accumulation has continued with RCH.TO climbing above $50.00 for the first time yesterday. Measured moves from previous trading ranges suggest potential upside resistance tests on trend near $53.50, $58.50, and $60.50.
A six-month period of consolidation has come to an end with Richelieu Hardware (RCH.TO) resuming its primary uptrend. This month, the shares have completed a bullish Triple Top breakout to a new all-time high and closed above $50.00, signaling and confirming the start of a new upleg.
Horizontal and vertical counts suggest potential upside resistance near $54.20, $57.50, and $64.75. Initial support appears near $46.25 based on a 3-box reversal and a retest of the recent breakout point.
With a perfect SMAX score of 10, RCH.TO is exhibiting strength across the asset classes.
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