In today’s edition of the Daily Stock report, we are going to take a look at Mullen Group Ltd which we have not highlighted since all the way back in April of 2021. Mullen Group Ltd. has risen in the SIA TSX Composite Report Index Report moving up 9 spots in the last month and 79 spots in the last quarter. The shares recently re-entered the Favored Zone of the report a few days ago and currently occupies the 53rd spot in the TSX Composite Index. Mullen Group is a supplier of trucking and logistics services particularly to the Energy, Mining. Forestry and Construction Industries in Western Canada. In looking at the Candlestick chart, we see that an important inflection point potentially has materialized in the shares as the stock has recently broken out to a new high after a long term sideways consolidation pattern running all the way back to April of 2021.
The bottom of this sideways consolidation pattern saw a double bottom form at the $10.50 area which it found support twice in December of 2021 and July of 2022. Then we see a pattern of higher lows materializing since that time. The top of the consolidation zone was at approximately the $15.00 area which formed a bullish Ascending Triangle Pattern which looks to finally be resolved to the upside. If we see some follow through on this potential breakout resistance can now be found at the $18.00 area based on a measured move.
In the attached Point and figure chart at a 2% scale, we see the shares have broken to the upside when they closed above the past resistance level of $15.62 in both December and January this past winter confirming a bullish Spread Triple Top pattern.
Next potential resistance can be found at $17.25 and, above that, $19.05. To the downside, support can be found at its 3-box reversal of $14.43 and the $13.07 to $13.34 area. With an SMAX score of 7 out of 10, MTL.TO is showing new-term strength against most asset classes.
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