Air Canada (AC.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since April of 2021. After spending most of the last two years stuck in the red zone, AC.TO has been climbing up the rankings more aggressively this year. Air Canada climbed 5 spots yesterday and rose 93 positions in the last month to currently sit in 54th place. A bullish ascending triangle base continues to form in Air Canada (AC.TO) shares. Since bottoming out a year ago, a recovery trend of higher lows has emerged with correction support emerging most recently in March and April. In May, AC.TO broke through the extension of a downtrend line and rallied up into the $21.00 to $23.00 area.
A breakout over $23.25 would complete the base and confirm the start of a new uptrend with next potential resistance near the $25.00 round number, then $27.00 and $29.00 based on measured moves and previous highs. Initial support currently appears near $21.00.
Air Canada (AC.TO) has been steadily turning around since bottoming out nearly a year ago, establishing a recovery trend of higher lows and snapping out of its previous downtrend. Through April and May, AC.TO established a base of support above $18.05, which it has launched up off of in recent weeks, an upswing that was signaled by a bullish Double Top breakout.
Currently AC.TO is challenging its February peak near $23.40, a close above that level would complete a bullish spread double top pattern and confirm the start of a new uptrend. Should that occur, previous column highs and vertical/horizontal counts suggest potential upside resistance tests near $26.90, $29.10, and $30.30 on trend. Initial support appears near $21.20 based on a 3-box reversal.
With a bullish SMAX score of 9, AC.TO is exhibiting strength against the asset classes.
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