What are we looking for?
Top Canadian-listed stocks that combine strong quantamental factors (quantitative and fundamental) with bullish classic technical chart patterns.
Canadian equities continue to show selective leadership as investors favour areas that demonstrate strong underlying fundamentals and constructive technical momentum. In this environment, stocks that combine high quantamental scores with bullish chart structures may be well-positioned to benefit from sustained trend strength.
The screen
Using Trading Central Strategy Builder, we screened for Canadian-listed stocks that show bullish technical setups alongside strong quantamental characteristics, blending technical and fundamental analysis.
A bullish classic technical pattern refers to a well-established chart formation that typically signals a potential continuation or reversal into an uptrend. Patterns such as ascending triangles, double bottoms or bullish breakouts from consolidation ranges reflect improving demand as buyers gradually gain control over sellers.
The criteria included:
• TC Quantamental Rating of 70 or higher, focusing on stocks with strong quantitative and fundamental alignment. This metric ranks stocks on a scale of 0 to 100, with 100 being the most bullish and 0 being the most bearish. TC’s quantamental ranking uses a combination of valuation, growth, quality, price momentum and income as key metrics when ranking a company’
• presence of bullish classic technical patterns identified through Trading Central’s automated technical analysis tool, Technical Insight, which can be screened directly within Strategy Builder, indicating constructive price structure and potential trend continuation;
• stock price of $10 or higher, helping to focus on more established companies with stronger liquidity profiles.
For context, we’ve also included market capitalization, price-to-earnings ratio and year-to-date and one-year performance.
More about Trading Central
Trading Central is a global leader in financial market research and investment analytics for retail online brokers and institutions. Its product suite provides actionable trading ideas based on technical and fundamental research covering stocks, exchange-traded funds, indexes, forex, options and commodities. Strategy Builder, our stock screener, and Technical Insight, our automated technical analysis research tool, are available through leading retail brokers in Canada and worldwide.
What we found
Topping our list is Altius Minerals Corp. ALS-T, a Canadian royalty and resource-focused company with diversified exposure to base and precious metals. The stock confirmed a bullish symmetrical triangle continuation pattern on Feb. 20, breaking higher from a tightening consolidation range, a signal that the prior uptrend may be resuming. Supporting the technical strength, Altius holds a TC Quantamental Rating of 77 out of 100, reflecting solid underlying fundamentals.
Another notable name is Fortuna Mining Corp. FVI-T, a global precious-metals producer with operations across Latin America and West Africa. The stock also confirmed a bullish symmetrical triangle continuation pattern on Feb. 19, breaking higher from a tightening consolidation range. Fortuna has the highest TC Quantamental Rating on the list at 82 out of 100. Shares have surged 38.1 per cent year-to-date and 172.7 per cent over the past year.
Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had an impressive 32-per-cent annualized return compared to 13 per cent for the S&P/TSX Composite Index.
The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.
Gary Christie is head of North American research at Trading Central in Ottawa.