Air Canada - (AC.TO) - February 7, 2023 (Daily Stock Report)


Air Canada (AC.TO) has started to really climb up the rankings of the SIA S&P/TSX Composite Index Report since the beginning of this year. After spending 18 months stuck in the Red Zone, Air Canada has rapidly ascended through the yellow neutral zone, climbing 73 positions in the last month. After finishing in 64th place yesterday, Air Canada is currently sitting 5 spots away from the green zone.

A big turnaround appears to be underway in Air Canada (AC.TO) shares. A long-term downtrend bottomed out last July and the shares spent the rest of the year building a base for recovery. The shares kicked off 2023 with a breakout over $20.00, a notable round number and support/resistance level, completing a bullish Ascending Triangle base. The start of a new uptrend has since been confirmed by a Golden Cross of the 50-day average over the 200-day average, and the shares snapping their previous downtrend line.

Measured moves from the base suggest potential resistance tests near $24.00 and $28.00 on trend, previous peaks suggest potential tests near $25.60, $26.80, $29.20 and $30.00. Initial support appears at the $20.00 round number and the breakout point which is also close to the 50-day average.

Although Air Canada’s (AC.TO) recovery trend started back in July, it has really started to take off since the beginning of this year.

A January breakout over $20.00 not only completed a bullish Double Top, it completed a Bullish Catapult which has launched the shares into a bullish High Pole advance. Along the way, Air Canada has also snapped two downtrend lines.

Initial resistance may emerge near the $25.00 round number, followed by $26.35, which is based on a horizontal count. Previous column highs suggest additional potential tests near $27.95 and $30.25 on trend. Initial support appears ner $21.20 based on a 3-box reversal.

With a bullish SMAX score of 9, AC.TO is exhibiting strength against the asset classes.

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