Boralex (BLX.TO) is a Canadian power company that produces renewable wind, solar, hydroelectric and thermal energy. After spending a year stuck in the red zone of the SIA S&P/TSX Composite Index Report, Boralex has been climbing back up the rankings since March and this week, it has returned to the Green Favored Zone. Yesterday it finished in 50th place, up 4 spots on the day and up 23 positions in the last month.
A major breakout is underway in Boralex (BLX.TO) shares. Earlier this year, a downtrend was finally contained by support near $30.00, a previous resistance level that had reversed polarity. Since then, the shares have been under renewed accumulation, establishing a series of higher lows and snapping out of a previous downtrend.
Having already regained the $40.00 level, which has become initial support, the shares broke out over $44.00 yesterday, completing a bullish Ascending Triangle base and confirming the start of a new uptrend. Next potential resistance appear near $50.00, where a round number and measured move converge, the previous peak near $55.00, and a measured $58.00.
A year-long downtrend in Boralex (BLX.TO) shares bottomed out in January near $30.00 and since then, the power producer has been under renewed accumulation. After calling off its bearish signals, Boralex has embarked on a series of positive pattern completions, including 3 Double Tops and a Spread Double Top, and has climbed above $44.00 to trade at its highest level since March of 2021.
Initial upside resistance appears near the $50.00 round number, followed by $51.70 based on a horizontal count and then the $53.75 to $54.85 area based on a cluster of counts and the January 2021 peak. Initial support appears near $40.75 based on a 3-box reversal.
With a bullish SMAX score of 8, BLX.TO is exhibiting strength against the asset classes.
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