Supply chain management software producer Kinaxis (KXS.TO) climbed up out of the red zone and returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report between February and mid-March. In the six weeks since KXS.TO returned to the Green Favored Zone, the shares are up 9.6%. Yesterday it moved up 4 spots in the relative strength rankings to 30th place.
With a bullish Ascending Triangle breakout in March, Kinaxis (KXS.TO) completed a massive base which formed over 15 months and embarked on a new recovery trend. Accumulation has been accelerating since January as shown by the steepening green trend lines, and two recent breakouts have been on volume spikes, indicating increasing investor interest. Yesterday, the shares broke out to their highest level since late 2021, signaling the start of another new upleg.
Initial upside resistance may appear near the $200,00 round number, followed by $220.00 based on a measured move from the big base. Initial support appears at a recent low near $175.00, then the $170.00 breakout point.
After bottoming out last June, Kinaxis (KXS.TO) staged a summer 2022 rebound rally and then paused for base building through to March. In the last two months, accumulation has accelerated and the shares have embarked on a new recovery trend, completing a Bullish Triangle and a series of bullish patterns including a Double Top, Spread Double Top and a Spread Triple Top. The shares continue to climb and have reached their highest level since January of 2022.
A round number and a horizontal count suggest initial resistance may appear in the $200.00 to $204.20 area, followed by the $221.00 to $225.50 area where previous peaks converge around another round number. Initial support appears in the $167.50 to $170.85 zone where a 3-box reversal and a retest of a recent breakout point converge.
With a perfect SMAX score of 10, KXS.TO is exhibiting strength across the asset classes.
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