Heavy equipment auctioneer Ritchie Bros (RBA.TO) has rocketed back up the rankings in the SIA S&P/TSX Composite Index Report over the last several weeks, starting deep in the red zone back in March and recently returning to the Green Favored Zone for the first time since December. On Friday it climbed another 18 positions to 59th place.
Ritchie Bros (RBA.TO) shares have come under renewed accumulation in the last week, rallying up from support in the mid $60s, snapping a downtrend line, causing a bearish descending triangle pattern to fail, and testing $80 all on an uptick in volume.
A close above $80 would confirm the start of a new upswing with next potential resistance near $92.00 then the $97.00 t $100.00 zone based on previous peaks. Initial support appears near $70.00.
For the last eighteen months, Richie Bros (RBA.TO) has been swinging up and down in a wide range between $63.00 and $98.00. Back in the winter, the shares successfully retested support at the bottom of this zone and have been working their way back upward. This month the start of a new upswing has become clearer with the shares establishing a higher low, then completing a bullish Double Top breakout. A close above $80.00 would complete a pending spread double top pattern and confirm the start of a new upswing.
Based on a combination of a previous column high and a horizontal count, initial upside resistance may appear near $93.90, followed by the late 2020 peak near $97.70. Initial support appears near $72.60 based on a 3-box reversal.
With its bullish SMAX score of increasing to 7, RBA.TO is exhibiting strength against the asset classes.
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