Forest products producer Canfor (CFP.TO) has been climbing again within the Green Favored Zone of the SIA S&P/TSX Composite Index Report. Yesterday the shares finished in 25th place, up 15 spots on the day and up 28 spots over the last week.
A major breakout is underway in Canfor (CFP.TO) shares this week, clearing $29.00 to complete a normal consolidation phase and signal the start of a new upleg within the upward trend of higher lows that started a year ago.
Based on a combination of measured moves from the recent trading range and the bullish Ascending Triangle base the shares completed last autumn, the spring 2018 peak and a round number, next potential upside resistance appears in the $33.50 to $35.50 area. Initial support appears at the $28.00 breakout point, then the $25.00 round number.
The primary uptrend in Canfor (CFP.TO) shares which has been in place for the last year re-asserted itself yesterday as the shares broke out over $28.50, to complete a bullish Double Top pattern, end the common consolidation standoff of the last month and signal the start of a new upleg.
Based on vertical and horizontal counts, next potential upside resistance appears on trend near $32.25 then $35.00. Initial downside support appears near $26.45.
With a perfect SMAX score of 10, CFP.TO is exhibiting near-term strength across the asset classes.
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