Commercial printer Transcontinental Inc. (TCL.A.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report from a short dip into the yellow zone. The shares were previously in the Green Zone between November 16, 2020 and June 1, 2021, returning 29.0% over that time compared with an 18.2% return for the index over that same period.
Transcontinental (TCL.A.TO) has a major breakout underway this week with the shares rallying up off of $2.00, overcoming $24.50 resistance and regaining the $25.00 level on an increase in volume, all combining to indicate that accumulation has accelerated.
Initial upside resistance appears in the $28.00 to $28.50 area where the 2018 peak and a measured move converge, followed by the $30.00 round number, plus $31.50 and $35.00 based on measured moves. Initial support moves up toward the $24.50 breakout point from $22.00 support.
Since snapping out of a downtrend back in October, Transcontinental (TCL.A.TO) has been under steady accumulation, advancing through a series of high poles and positive pattern breakouts followed by periods of consolidation at higher levels. This week, the shares have embarked on a new rally phase, completing bullish Double Top and Spread Double Top breakouts and regaining the $25.00 level for the first time since 2018.
Next potential upside resistance appears at the July 2018 peak near $28.30, followed on trend by $30.65, $31.90 and $35.20 all of which are based on vertical and horizontal counts. Initial support appears near $23.70 based on a 3-box reversal.
With a bullish SMAX score of 9, TCL.A.TO is exhibiting strength against the asset classes.
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