SIA Chartsâ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Waste management company GFL Environmental (GFL.TO) has reversed a downtrend this month. After spending much of this year drifting downward within the SIA S&P/TSX Composite Index Report, GFL.TO has popped back up into the Green Favored Zone for the first time since March, up from the red zone. GFL Environmental finished yesterday in 32nd place, up 4 spots on the day and up 118 positions in the last month. Also in the last month, the shares are up 22.0%, while the S&P/TSX Composite Index is down 2.7%. Candlestick Chart Breaks Out Over $50.00. For the last three years, GFL Environmental (GFL.TO) shares had been stuck in a sideways trading range, swinging back and forth between $32.00 and $50.00. In the last two weeks, the shares have come under renewed accumulation. First, they rallied off of a higher low near $42.00 on a big surge in volume, a sign of new investor interest. Last week, the shares continued to rally and broke out over $50.00 for the first time in over three years, signaling the start of a new advance.
Based on measured moves from recent trading ranges, next potential resistance may appear near $58.00, $62.00, or $68.00 on trend. Initial support appears at former resistance near $47.50.
Point and Figure Chart Tests a Three-Year High. In the fall of 2022, a selloff in GFL Environmental (GFL.TO) was contained by a long-term uptrend support line, Since then, the shares have been grinding their way higher. Back in May, a pullback bottomed out at a higher low and for the last few weeks, the shares have been under renewed accumulation, completing bullish Double Top and Spread Double Top breakouts and snapping out of a downtrend.
Currently, GFL.TO is bumping up against its late 2021 peak and $53.15. A close above there would confirm the start of a new advance. A horizontal count suggests potential resistance near $61.10 based on a horizontal count, followed by $64.80 which is based on a vertical count. Initial support appears near $48.15 based on a three box reversal.
With a perfect 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, GFL.TO is exhibiting short-term strength across the asset classes.
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