SIA Chartsâ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth.
Today, we are going to look at Goeasy Ltd (GSY.TO) which we last commented on the December 27, 2023, edition of the Daily Stock Report. The shares first entered the Green Favored Zone of the SIA TSX Composite Index back on November 9th of last year at a price of $128.15. The shares have remained in the favored Zone ever since and the closing price of the shares is now at $176.04 representing at 37.3% price increase in less than 6 months time. Yesterday, GSY.TO finished in 31st position, up 3 spots on the day and up 11 places in the last month. Over the last month, the shares are up 10.45%, compared with a decline of -2.04% for the TSX Composite Index. In looking at the attached Candlestick chart of Goeasy Ltd, we see that the shares ultimately found its bottom back in July of 2022 and May of 2023 forming a nice double bottom pattern. The accumulation phase took over with a strong uptrend forming since then. A pattern of higher lows and higher highs has materialized which is still intact today. The shares really took off when it broke above a neckline at the $130.00 area.
It is quickly approaching near term resistance at its all-time highs near the $200 level which may act as psychological resistance as well. Support can be found at the $155 to $160 area. It will be interesting to see going forward if the shares can break past the $200 resistance level and march onto new all-time highs.
In the attached Point and Figure Chart at a 2% Scale, we see the shareâs strong rally starting in May of last year. The shares changed trend to the upside since then with a very strong move between November of last year to January of this year with a column of Xâs lasting 24 rows without even a 3-box reversal. The shares recently broke above a prior resistance level at $178.65 with next upcoming resistance at $185.86, a previous column high. Above this, further resistance can be found at the all time high of $201.18. To the downside, support can be found at its 3-box reversal of $165.04 and, below that, $149.48. The shares currently exhibit at bullish Triple Top pattern. With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, GSY.TO is exhibiting short-term strength against the asset classes.
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