Imperial Oil Ltd - (IMO.TO) - March 12, 2024 (Daily Stock Report)


With the price of Crude Oil on the rise in recent weeks, Energy stocks have been attracting renewed attention from investors and moving back up in broad market relative strength rankings.

Imperial Oil (IMO.TO), for example, has been climbing back up the rankings in the SIA S&P/TSX 60 Index Report for the last month, over which time it moved up 11 spots. Yesterday, IMO.TO returned to the Green Favored Zone for the first time since October after moving up another 2 positions to 15th place. A major breakout is underway in Imperial Oil (IMO.TO) shares. For nearly six months, IMO.TO was stuck in a sideways trading range between $72.00 and $74.00. Starting in February, the shares have been under renewed accumulation lately, consistently climbing in a Rising Channel of higher highs and higher lows.

Earlier this month, IMO.TO broke out over this range, retested trend support and then launched into a new upleg. Yesterday, the shares completed a new all-time high through a Bullish Engulfing candle on a jump in volumes, a sign of continued interest from bullish investors.

A measured move from the recent trading range suggests potential upside resistance tests may appear near $96.00, then the $100.00 round number. Initial support appears in the $82.00-$84.00 area around recent support/resistance levels.

Imperial Oil (IMO.TO) has been under consistent accumulation since the March 2020 market bottom. The shares rallied and broke out last summer, then paused between October and February in what now appears to be a normal correction that bottomed out at another higher low. Moving into March, the shares have started to rally again, completing a bullish Triple Top breakout and rallying to new all-time highs.

Next potential upside resistance appears in the $98.55 to $104.60 zone where a number of vertical and horizontal counts cluster around the $100.00 round number. Initial support appears near $80.85 based on a 3-box reversal.

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

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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