The last time we commented on Thomson Reuters Corp (TRI.TO) was on July 4, 2022, when the shares just entered the Favored Zone of the S&P/TSX Composite Index report a few weeks prior at a price of $132.60. Today we see the shares have held onto the Favored Zone throughout this time period and now they are at $174.13 representing a 31% increase in a little over a year.
The shares currently occupy the #40 spot in the TSX Comp Index report. Thomson Reuters is a global content and technology provider serving professionals across the legal, tax, accounting, compliance, government and media industries. Its products combine highly specialized software to empower professionals to make informed decisions. In looking at the attached Candlestick chart of TRI.TO, we see that the shares found a bottom at around the $120.00 area back in May of last year. Since then, the accumulation phase began with a consistent pattern of higher highs and higher lows up until May of this year. The shares pulled back and broke below its 50 Day Moving Average finding support at $160.00. Since May we see an ascending triangle forming with higher lows and the current high of $180.00 proving to be solid upside resistance. It will be interesting to see moving forward if this ascending triangle can lead to a breakout to the upside above its resistance at $180.00.
In the attached Point and Figure Chart at a 2% Scale, we see the share’s most recent breakout to the upside back in December when the shares formed a new upleg breaking above $151.92. In April the shares pulled back into a column of O’s finding support at $158.06. Now we see an ascending triangle pattern also form in the Point and Figure chart. Two Bull traps formed this month and last month at the $181.00 area. If the shares manage to break above the $185.19 resistance level, next potential resistance above that, is at the $200.00 area based on a measured move and a psychological number. Support can be found at $167.73 and, below that, $158.06. With an SMAX Score of 8 out of 10, TRI.TO is exhibiting near term strength against most asset classes.
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