Tourmaline Oil (TOU.TO) has been steadily climbing up the rankings in the SIA S&P/TSX 60 Index Report since May. In June it exited the red zone and in July it returned to the Green Favored Zone for the first time since January. TOU.TO continues to rise up the relative strength rankings, finishing in 12th place yesterday, up 1 spot on the day and up 16 places in the last month. Back in March, a four-month selloff in Tourmaline Oil (TOU.TO) shares bottomed out just above the $50.00 round number. The shares then spent four months building a base for recovery between $50.00 and $62.00 with higher lows below resistance forming a bullish Ascending Triangle pattern which was completed last month. Since breaking out, the slope of the recovery trend has increased, indicating that accumulation has accelerated.
Upside resistance may initially emerge at the November 2022 peak near $77.50, followed by the $83.00-$84.00 area based on measured moves. Initial support appears at the $62.00 recent breakout point.
Bouncing back from a winter selloff, Tourmaline Oil (TOU.TO) has been on the rebound since bottoming out in April. Last month, the shares completed bullish Double Top and Spread Double Top breakouts, signaling the start of a new upswing.
Initial upside resistance appears at the previous peak near $77.10, followed on trend by $81.80 based on a horizontal count. Initial support appears near $63.25 based on a three-box reversal.
With a bullish SMAX score of 7, TOU.TO is exhibiting strength against the asset classes.
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