From the desk of Tom Bruni @BruniCharting
Last time we wrote about Canada, our primary focus was on the breakouts occurring in many of the Gold Miners.
This time, we’re looking for stocks displaying long-term trends of absolute momentum and relative strength…and we’re buying them.
Let’s get into the charts.
Here’s Canadian national Railway going out at all-time highs last week. From a structural perspective, this signals the continuation of the stock’s long-term uptrend and indicates a target up towards 160. If you want to keep your risk management tight, then 128 is the level, but if you want to give it more room then this thesis remains intact if prices are above 120.
Click on chart to enlarge view.
And relative to the rest of the TSX Capped 60 Index, prices have spent the past few months basing and are now continuing higher. Can you find a more clear trend of outperformance?
Another favorite of ours since it broke out in 2018/2019 has been Thomson-Reuters Inc. After basing above 90, last week the stock accelerated off its recent lows and closed at 6-week highs. If prices are above 90, this looks like the start of its next leg higher which targets 119.
And here’s the stock pulling back to its breakout area on a relative basis and beginning to turn higher. Looks like a very logical level for it to begin outperforming again.Lost Password?