For the first time in two years, Bank of Montreal (BMO.TO) has returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report, after climbing 16 spots in the last month to 15th place.
This three-year weekly chart highlights the strength of the renewed interest in Bank of Montreal (BMO.TO) shares that has emerged in the last three weeks. The shares had been steadily recovering since March and completed a bullish Ascending Triangle base back in August. After consolidating for three months in a higher range, the recent breakout over $84.00, an old support level, signaled the start of the current advance.
Initial resistance appears near $100.00, a round number which coincides with previous resistance. Next potential resistance on a breakout appears in the $114.00 to $117.50 area where three measured moves cluster. Initial support moves up to the $90.00 round number from the $84.00 breakout point.
Bank of Montreal (BMO.TO) shares have been steadily advancing since May, completing a series of bullish Spread Double Top and Double Top patterns along the way. Accumulation has accelerated in the last month, with the shares driving up from near $80.00 to approach $97.50 without even a 6% (3-box) correction along the way.
Initial upside resistance appears near $99.80 where the previous peak converges with the $100.00 round number, followed by the $103.80 to $104.90 zone based on a cluster of vertical and horizontal counts. Initial support appears near $93.10 based on a 3-box reversal.
With a bullish SMAX score of 9, BMO.TO is exhibiting near-term strength against the asset classes.
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