Canada’s Equitable Group (EQB.TO), better known as EQ Bank, started its rise up the relative strength rankings in the SIA S&P/TSX Composite Index Report back in November, and by March, it had returned to the Green Favored Zone for the first time since late 2021. The shares had a setback when sentiment turned against the banking sector in March, but this month it has been climbing once again and yesterday EQB.TO returned to the Green Favored Zone. The shares are currently in 57th place, after climbing 5 spots yesterday and 92 positions in the last month. Equitable Group (EQB.TO) has resumed its recovery trend following a March sector setback in banking stocks, and currently appears close to breaking out of a previous downtrend. The shares started to recover back in November and rallied into early March, completing a bullish Golden Cross along the way. The March selloff bottomed out near the 200-day moving average and established a higher low near $55.00 in late March.
For the last two months, EQB.TO has been under accumulation, steadily advancing in a Rising Channel of higher highs and higher lows. A breakout over the March peak near $70.00 would confirm the start of a new advance with next potential resistance in the $75.00 to $77.50 zone, then closer to $82.50 based on previous highs. Initial support appears at the 50-day average near $61.00.
The 1% chart highlights the current rebound in Equitable Group (EQB.TO) shares. Since a March downswing bottomed out at a higher low, accumulation has resumed with the shares recently completing a bullish Double Top breakout.
Currently, EQB.TO is approaching resistance at its February high near $69.20, where a breakout would confirm that the larger recovery trend is back underway. Should that occur, previous column highs suggest potential upside resistance near $75.70 and $81.15 on trend. Initial support appears near $63.90 based on a 3-box reversal.
With a bullish SMAX score of 9, EQB.TO is exhibiting strength against the asset classes.
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