We are excited to introduce our first in a continuing series of pieces surrounding stock ideas generated through technical analysis. In partnership with Dwight over at Set Your Stop, we will be posting some his top technical analysis ideas every two weeks. Subscribe to the blog to get notifications on when his next piece is up and sign up for a free trial if you are not a member to get access immediately.

Savaria Corp. (TSX:SIS)

Savaria Corp. (TSX:SIS) has just performed what looks like a successful retest of the March breakout on massive volume. There's a saying in the technical world, "What was once resistance will now become support". When price action breaks out above resistance, it signals a change in supply and demand. If price action returns to this level that once was resistance, there is likely to be an increase in demand and that past resistance will now become support, and that is exactly what happened last week with Savaria.

 

Not only did the price action come back to successfully retest the breakout, but it was clear that there was an increase in demand as the buyers aggressively stepped up.

 

The price action hammered hard off of support on the highest combined 2-week trading volume in the history of the stock, totaling 3,047,769 shares. This price action suggests the bottom is now in place and offers a nice risk / reward entry. My defined risk is a stop-loss order place just below last weeks low.

View the 5i Research full report on Savaria (TSX: SIS) in the member area here. If you're not currently a member, you can view the full report for free, by signing up for a 1 month free trial.

 

Stella-Jones (TSX:SJ)

Stella-Jones (TSX:SJ) has just broken out from a 22-month consolidation pattern (the bigger the base, the higher the space). Relative strength vs. the S&P500 is breaking out to 8-month highs, momentum (PMO) is accelerating higher, and the accumulation line continues to surge. This price action is extremely bullish and suggests a continuation of the multi-year uptrend is now underway.

View our full report on Stella-Jones (TSX: SJ) in the member area here. If you're not currently a member, you can view the full report for free, by signing up for a 1 month free trial.

 

 

AGF Management (TSX:AGF.B)

AGF Management (TSX:AGF.B) was first featured on SetYourStop.com on July 21st as the price action broke out above volume by price resistance. The closing price that day was $7.21. Since, the price action has continued to surge nearly 12% to close out last week at $7.82.

 

Relative strength continues to make new highs vs. the S&P500, the SCTR ranking is trending above 75% (top performing quartile of TSX stocks), Momentum (MACD) continues to accelerate, and the stock pays a 4% yield.

 

This price action is very bullish, not only did AGF print new 52-week highs last week, but price action also printed new 33-month highs. Stocks that make new 52-week highs tend to continue making new 52-week highs.

 

 

By Dwight Galusha from SetYourStop.com

 

The author currently does not own any of these three names and does not plan on owning any of those three names within the next 72 hours. 

 

Nothing in this article should be deemed as a recommendation to buy or sell securities and is for informational purposes only. Please do your own due diligence before making an investment decision.