Over the course of this month, oilfield service provider Precision Drilling (PD.TO) has steadily worked its way up the rankings in the SIA S&P/TSX Composite Index Report, climbing up from deep in the red zone toward the top of the Green Favored Zone. On Friday, PD.TO finished in 13th place, up 15 spots on the day and up 167 positions in the last month.
In recent weeks, accumulation has resumed in Precision Drilling (PD.TO) shares. Starting with a successful retest of its July low near $65.00, the shares have snapped a downtrend line, retaken their 50-day moving average, and completed a bullish Ascending Triangle base with a breakout over $90.00.
Currently approaching the $100.00 round number, next potential resistance appears in the $110.00-$115.00 area based on a retest of the June peak and a measured move. Initial support appears near the $90.00 breakout point.
Precision Drilling (PD.TO) has been on an upswing since successfully retesting its July low back in September. Along the way back up to within striking distance of the $100.00 round number, PD.TO has completed a number of bullish patterns including a Spread Triple Top, Spread Double Top and a Double Top with the current advance extending into a bullish High Pole.
After $100.00, next potential resistance appears at the June high near $107.15, then $113.70 based on a horizontal count. Initial support appears near $89.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, PD.TO is exhibiting strength relative to the asset classes.
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