Since bottoming out deep in the red zone back in April, Thomson Reuters (TRI.TO) has steadily been working its way back upward within the SIA S&P/TSX 60 Index Report. Last week, it returned to the Green Favored Zone for the first time since January. It currently is in 15th place, up 26 positions in the last month.
A first half downtrend appears to have been contained near $120.00, a former resistance level, with the shares bottoming out in a bullish bear trap where they broke down briefly, then turned back upward and never looked back. Since May, the shares have been recovering, retaking their 50-day average and snapping a downtrend line.
Overall, it appears that the shares have shifted from a downward trend to a sideways, base building trend between $120.00 and $137.50. A close above $137.50 would signal the start of a new uptrend. Should that occur, next potential resistance would appear in the $150.00 to $155.00 zone where a round number, measured move and previous peak cluster. Initial support has moved up toward the $130.00 breakout point from the 50-day average near $126.00.
Thomson Reuters (TRI.TO) shares have been sliding since their peak back in December, but signs of a potential turnaround have started to emerge. A recent Double Bottom breakdown failed to extend into a low pole, instead reversing back upward after only two rows, a bullish Bear Trap reversal.
Currently, TRI.TO is testing resistance near $136.60, a close above that level would complete a bullish double top pattern and confirm the start of a new uptrend. Should that occur, next potential resistance may appear at previous column highs near $150.80 then $156.90.
On the other hand, a failure would suggest that recent action has been a common upward correction within an ongoing downtrend. Should that occur, next potential support appears near $123.70 based on a 3-box reversal, followed by the June low near $118.90.
With a bullish SMAX score of 7, TRI.TO is exhibiting strength against the asset classes.
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