Stantec Inc. - (STN.TO) - February 24, 2023 (Daily Stock Report)


Engineering company Stantec (STN.TO) jumped 9.3% yesterday in response to a positive earnings report. Since July, when Stantec completed a move up to the Green Favored Zone from the Red Zone in the SIA S&P/TSX Composite Index Report, the shares are up 16.7%. Yesterday, Stantec finished in 27th place, up 11 positions on the day.

Stantec (STN.TO) staged a major breakout yesterday. A breakaway gap over $72.50 on a spike in volume carried the shares to new all-time highs, completing a recovery process which started back in June and signaling the start of a new uptrend. Over the eight months leading up to this momentous day, the shares had established a floor near $52.50, snapped a downtrend line, completed a bullish Golden Cross and built a new uptrend of higher lows.

Initial resistance may emerge at yesterday’s peak near $83.50, followed by $92.50 which is based on a measured move from the previous trading range. Initial support appears near the $72.50 breakout point.

After bottoming out over the summer, Stantec (STN.TO) started to come under renewed accumulation with a bullish Double Top breakout. Accumulation has accelerated since November when the shares completed a second Double Top that combined into a Bullish Catapult. Since then the shares have consistently climbed into a bullish High Pole, with a bullish Spread Double Top breakout signaling a move to new all-time highs.

Horizontal counts suggest initial resistance may appear in the $81.70 to $85.00 area, followed by $93.85 which is based on a vertical count. Initial support appears near $71.10 based on a 3-box reversal and a retest of a recent breakout point.

With a perfect SMAX score of 10, STN.TO is exhibiting strength across the asset classes.

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