Electronics manufacturer Celestica (CLS.TO) has turned around dramatically since we last mentioned it in the April 26 edition of the Daily Stock Report. In the last month, CLS.TO has jumped 104 positions in the SIA S&P/TSX Composite Index report, including a gain of 12 spots yesterday to 26th place, and it has returned to the Green Favored Zone from a dip down into the red zone. Celestica (CLS.TO) staged a big breakout yesterday, with a breakaway gap clearing $16.00 and the 50-day moving average and follow-through carrying the shares up toward $17.50 and snapping a downtrend line. This action indicates that the shares have come under renewed accumulation and that an upswing has started in earnest.
Initial upside resistance may appear near the February highs in the $18.50 to $19.00 area, followed by the $20.00 round number and $22.00 based on a measured move. Initial support appears near $16.75 with the previous downtrend line reversing polarity then the 50-day average near $16.00.
The 1% chart highlights the strength of the turnaround in Celestica (CLS.TO) shares over the last month. A three-month selloff was contained by previous support near $14.25 earlier this month, and since then, the shares have been bouncing back. A bullish Double Top breakout has now extended into a bullish Spread Double Top breakout.
Initial upside resistance appears at the February peak near $18.50, followed by $18.85 and $19.40 which are based on horizontal counts, then the $20.00 round number. Initial support appears near $17.05 based on a 3-box reversal.
With a perfect SMAX score of 10, CLS.TO is exhibiting strength across the asset classes.
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