SIA Chartsâ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.
With the Aerospace sector attracting renewed interest in recent weeks, Bombardier (BBD.B.TO), has been making a steady ascent back up the rankings in the SIA S&P/TSX Composite Index Report since February, after previously spending six months in the red zone.
The shares finished in 12th position on Friday, up 7 spots on the day, 53 spots in the last week, 84 spots in the last month and 145 positions over the last three months. Over the last month, the shares are up 27.4%, compared with a 0.75% loss for the S&P/TSX Composite Index.
This six-year chart highlights the long-running attempt by Bombardier (BBD.TO) to bounce back from a massive selloff back in the 2010s. The shares finally bottomed out in late 2020 and since then have been generally trending back upward. Higher lows have been forming a large ascending triangle base. The current upswing kicked off with a bullish Ascending Triangle breakout over $60.00.
Currently BBD.B is once again approaching $75.00 round number and previous high resistance which has been in place for over five years. A close above that level would complete a massive base and confirm the start of a new recovery trend. Should that occur, measured moves suggest potential upside resistance may appear near $80.00, or the $100.00 round number. Initial support appears near the $60.00 recent breakout point.
Last month, a year-long downtrend in Bombardier shares came to an end when the shares staged a bullish Spread Triple Top breakout off a base and snapped the downtrend line. Following a brief pause, the shares have launched into a new advance with a second Double Top and Bullish Catapult that has extended into a bullish High Pole.
Initial upside resistance appears at the April 2023 high near the $75.00 round number, which aligns with a vertical count. A horizontal count suggests potential resistance near $81.25 on trend. Initial support appears near $65.30 based on a 3-box reversal.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, BBD.B.TO is exhibiting short-term strength across all the asset classes
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