Heavy equipment dealer Finning International (FTT.TO) returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report yesterday. It has been moving up in the relative strength rankings since early October, bouncing back from a trip into the red zone. Yesterday it finished in 57th place, up 5 spots on the day and up 128 positions in the last month.
The technical picture for Finning International (FTT.TO) has turned increasingly bullish over the last two months. Since completing a successful retest of the July low near $23.50, FTT.TO has been under renewed accumulation. Over the last two months, a downtrend has been broken and a new uptrend of higher lows has emerged. FTT.TO also broke out of a base clearing $30.00 which has been successfully retested as new support.
A close above $32.50 would provide additional confirmation that a new upleg has commenced with next potential resistance tests on trend possible near $34.50 and $37.50 based on measured moves, then the April peak near $39.25.
A summer selloff in Finning International (FTT.TO) shares bottomed out back in September in a Bear Trap where a double bottom breakdown ended after two rows. Since then the shares reversed back upward, rallying from near $23.00 toward $33.00 without even a three-box correction, completing a bullish Double Top breakout and extending its rally into a bullish High Pole.
A horizontal count suggests potential initial resistance near $33.80, while previous column highs and lows including the April peak suggest potential resistance in the $37.30 to $38.80 zone. Initial support appears near $30.00 based on the convergence of a 3-box reversal and a round number.
With a perfect SMAX score of 10, FTT.TO is exhibiting strength across the asset classes.
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