Electronics manufacturer Celestica (CLS.TO) has been sliding back down the rankings in the SIA S&P/TSX Composite Index Report for about a month now. Yesterday, it dropped back down into the Yellow Neutral Zone for the first time since October. Currently sitting in 65th position, CLS.TO fell 10 spots yesterday and it is down 44 places in the last month.
Celestica (CLS.TO) staged a major breakdown yesterday taking out $16.00, a key support/resistance level to complete a bearish Descending Triangle which has been forming since the peak back in February. In addition to starting a downtrend of lower highs, after the shares broke down below their 50-day moving average they retested it as new resistance before turning down again, a bearish sign.
A test of the 200-day moving average suggests initial support may emerge near the $15.00 round number, followed by the $14.00 to $14.25 area based on a measured move and previous support, followed by the October bottom in the $11.50 to $12.00 area. Initial resistance appears at the $16.00 breakdown point, then a downtrend line near $17.00.
This 1% chart highlights the technical downturn in Celestica (CLS.TO) shares over the last two months. A High Pole rally peaked back in February near $18.50. Since then, the shares have fallen under distribution, establishing a new downtrend of lower highs and completing a series of bearish Double Bottom breakdowns.
With the last bounce only being 3 rows, the recent Double Bottom breakdown has also completed a Bearish Catapult and has signaled the start of a new downleg. Vertical and horizontal counts suggest potential downside support near $14.70, then $13.85 on trend, along with $13.30 which is based on a previous column low. Initial resistance on a bounce may emerge near $16.25 based on a 3-box reversal and a retest of a recent breakdown point.
With a bearish SMAX score of 5, CLS.TO is exhibiting weakness against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
