Headquartered in Calgary, Alberta, Canada, Enerflex employs approximately 2,200 people and provides natural gas compression, oil and gas processing equipment for sale or lease, refrigeration systems, power generation equipment, and field maintenance and contracting services. Enerflex, its subsidiaries, affiliates, and joint ventures operate in Canada, the United States, Argentina, Colombia, Brazil, Mexico, Australia, the United Kingdom, the United Arab Emirates, Kuwait, Oman, Bahrain, and Indonesia. Shares of Enerflex have surged to the top of the SIA S&P TSX Small Cap Index Report, posting returns of 44.31% over the past month, 69.55% for the past quarter, and a remarkable 113.98% year-to-date. In comparison, the SIA S&P-TSX SmallCap Equal Weight Index (EWIXCS.TO) has returned -2.06%, -0.82%, and 8.46% over the same time periods. This notable outperformance stands out among energy stocks, which have generally underperformed. Over this period, shares of EFX.TO have moved up 62 positions in the past month and 138 positions in the past quarter within the SIA S&P TSX Small Cap Report. Given such a substantial move in recent months, attention turns to where the rally may encounter resistance. As shares of EFX.TO are reaching 52-week highs, analysis shifts to a long-term monthly chart to identify potential resistance levels, which appear in the trading range during 2014 to 2019. A resistance zone is visible in the $14-$17 range, although volume metrics are lower compared to 2020-2024 levels, with buyer interest appearing much stronger in the $5-$10 range.
The notable breakout seems to have occurred this past month as shares approached the $10 resistance level and quickly accelerated to the current price around $13. Alongside the previous candlestick chart and highlighted in the box we display the #1 ranking out of 235 names on the SIA S&P TSX Small Cap Index Report, with an arrow indicating that EFX.TO currently holds a SIA Rank of 99.6% across all reports, which is a powerful reading in and of itself. The second chart, a point-and-figure chart scaled at 2%, provides further precision in identifying support and resistance levels. Support is found at the triple top breakout level of $10.43, with additional support at $11.98, a triple bottom breakdown level from 2018. Resistance is observed at $13.77 (from 2018), $16.45 (from 2019), and $18.16, the all-time high from the spring of 2019. Although the energy sector remains unfavored within the SIA platform, shares of Enerflex are clearly bucking the trend, further evidenced by its SMAX score of 10 out of 10.
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