Dollarama (DOL.TO) has started to climb back up the rankings in the SIA S&P/TSX 60 Index Report. After drifting downward through the first few months of the year and dipping into the yellow zone, DOL.TO has returned to the Green Favored Zone and has moved up 7 positions in the last month to 10th place.
A major breakout is underway in Dollarama (DOL.TO) shares. The discount retailer spent most of 2023 so far trading sideways in a range between $75.00 and $85.00 consolidating gains made in 2022. Earlier this month, the shares established a higher low near $82.00. Last week, DOL.TO broke out to a new all-time high, completing a bullish Ascending Triangle pattern and signaling the start of a new advance.
Measured moves from the triangle suggest potential resistance in the $94.00 to $96.00 area, followed by the $100.00 round number. Initial support appears near $82.00 then the $80.00 round number.
After steadily climbing from the middle of 2020 through to the end of 2022, Dollarama (DOL.TO) spent the first half of this year trending sideways and consolidating gains. Over this time, the shares established support above the $75.00 round number, a previous breakout point.
Dollarama started to climb again in April and last week they broke out to a new all-time high, completing a bullish Quadruple Top pattern on a 1% chart and signaling the start of a new advance. Horizontal counts suggest potential upside resistance may emerge near $93.85 then $98.65 on trend, followed by the $100.00 round number. Initial support appears near $82.50 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, DOL.TO is exhibiting strength against the asset classes.
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