SIA Chartsā Relative Strength rankings not only help investors to identify which stocks are outperforming within broad market universes but also within their sectors. It also can help investors determine the difference between a pause or correction, and a more significant downturn.
Canadian engineering stocks started the year off strong but recently stalled out for a few weeks. Unlike some of its competitors, which saw their relative strength weaken considerably, AtkinsRĆ©alis* (ATRL.TO) remained highly ranked through this period, staying in the upper half of the Green Favored Zone in the SIA S&P/TSX 60 Index Report, while its SMAX score remained above 7. AtkinsRĆ©alis* has consistently been in the Green Favored Zone of the SIA S&P 60 Index Report since March of 2023. Over that time it has gained 93.5%, while the S&P/TSX Composite Index has climbed 4.5%.
Since bottoming out near $22.00 in the summer of 2022, AtkinsRĆ©alis* (ATRL.TO) shares have been under steady accumulation. Along the way, an uptrend of consistently higher lows has emerged and the shares have advanced in a step pattern of rallies followed by periods of consolidation at higher levels.
Since the beginning of 2023, ATRL.TO has completed two bullish Ascending Triangle patterns. The latest advance has taken the form of a bullish Flag pattern with an initial rally followed by a horizontal pause and recently the breakout start to what looks like a second rally phase.
Measured moves suggest next potential resistance may emerge near $70.00, followed by the $75.00 round number. Initial support appears near the $50.00 round number.
*Shares of AtkinsRĆ©alis* are held in portfolios managed by SIA Wealth Management.
In early 2023, AtkinsRĆ©alis* (ATRL.TO) broke out of a downtrend and has not really looked back since, particularly since last October.
So far this year, a bullish Flag pattern has unfolded. The shares started the year with a breakout and a big rally, then paused for a couple of months to consolidate gains in a higher range, a sign of continued investor support.
This month the shares have broken out once again, rallying to new all-time highs. The completion of a bullish Triple Top pattern signals that a new upleg has commenced.
Horizontal and vertical counts suggest potential upside resistance near $71.20, $75.55, or $80.20 on trend. Initial support appears near $53.95 based on a 3-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, CJT.TO is exhibiting short-term strength across the asset classes.
*Shares of AtkinsRĆ©alis* are held in portfolios managed by SIA Wealth Management.
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