GFL Environmental Inc (GFL.TO) - February 6 2024 (Daily Stock Report)



Waste management provider GFL Environmental, Inc (GFL.TO) has been steadily making its way back up the rankings in the SIA S&P/TSX Composite Index Report since early December 2023, almost completely reversing a previous relative strength downtrend that had started back in July.

GFL.TO climbed up out of the red zone in December and for over a month it has been working its way up toward the top of the Yellow Neutral Zone finishing yesterday in 58th place, one spot away from a return to the green zone. In the last month, GFL.TO has moved up 43 spots including a gain of 12 positions yesterday. Year to date, GFL.TO is up 12.15%, while the S&P/TSX Composite Index is down 0.4%.

Candlestick Chart Breaks Out of a Base:

A major breakout is underway in GFL Environmental (GFL.TO) shares. Following a strong advance from October 2022 to July of 2023, the shares fell back in the second half of last year. It turns out that the pullback was base building for the next move as a bullish Head and Shoulders base formed over a six-month period.

Successful tests of $43.00 helped to form the left and right shoulders but the head near $38.00 was particularly significant. When GFL.TO turned back upward it did so on a price and volume spike and quickly retook the 10-week moving average, which it has held above since – All signs of renewed accumulation.

Last week, GFL.TO blasted through the $46.00 neckline, completing the bullish Head and Shoulders base pattern, and signaling the start of a new advance. Initial upside resistance may appear at the July peak near $52.00, followed by $54.00 and $62.00 based on measured moves. Initial support may appear at the $46.00 breakout point followed by the 10-week moving average near $46.50.

Point and Figure Chart Stages a Bullish Catapult:

Shrugging off a downtrend that played out over the second half of 2023, GFL Environmental (GFL.TO) has been under renewed accumulation since bottoming out in December. Following an initial recovery rally, the shares staged a moderate 5-row correction on a 1% chart that was contained above the October low near $42.50.

Following that brief intermission, accumulation has resumed, and the shares have launched into a new upleg, snapping a downtrend line, completing a bullish Spread Triple Top breakout and a Bullish Catapult. A horizontal count suggests initial resistance may appear around the July 2023 peak near $51.85, followed by $56.15 where two vertical counts converge. Initial support appears near $46.45 based on a 3-box reversal.

With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, GFL.TO is exhibiting short-term strength across the asset classes.

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