Bouncing back from a summer slump down into the red zone, Imperial Oil (IMO.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time in six weeks. With oil and gas producers attracting renewed interest, IMO.TO jumped 13 positions yesterday to 13th place.
Having established and confirmed support near $52.50, Imperial Oil (IMO.TO) appears to have come under renewed accumulation and resumed its primary uptrend following a correction. In the last few days, Imperial has regained its 50-day average, the $60.00 level, and broken out over $62.50, all combining to indicate that a new upswing is underway.
Currently, the shares are bumping up against $65.00 initial resistance with their next potential big test on trend at the previous peak near $72.50. Initial support moves up to the 50-day average near $59.00.
Back in July, a pullback in Imperial Oil (IMO.TO) shares was contained by previous support near $52.20. Since then, the shares have been attracting renewed interest and recently, the shares have started to advance once again. In recent weeks, IMO.TO has completed bullish Double Top and Spread Double Top breakouts, signaling the start of a new upswing.
Initial upside resistance tests appear at previous column highs near $68.90 and $73.10, along with $77.60 which is based on a horizontal count. Initial support appears near $60.00 where a round number and a 3-box reversal converge.
With its bullish SMAX score increasing to a perfect 10, IMO.TO is exhibiting strength across the asset classes.
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