Two TSX Listed Stocks Giving Bullish Indications

The benchmark S&P/TSX Composite Index (TSX: ^TSX) started the last week on a positive note and maintained a bullish momentum for the entire week. The S&P/TSX composite index advanced by 97.35 points (0.44%) to 22264.38 for the week ending April 05, 2024. On April 08, 2024, the index closed at 22260.30, down by 4.08 points or ~0.02%. 

Labrador Iron Ore Royalty Corporation (TSX: LIF) 

Labrador Iron Ore Royalty Corporation is a Canadian corporation. The company generates all its revenue from its equity investment in Iron Ore Company of Canada, (IOC) and its IOC royalty and commission interests.  

Despite persistent concerns about the global economy, particularly the Chinese property sector, the forecast for steel demand and iron ore prices remains positive. The World Steel Association forecasts a 1.9% increase in worldwide steel production in 2024. So far in 2024, the average price of the 65% Fe index has been USD 142 per tonne, up from an average of USD 132 in 2023. 

Technical View: On the daily chart, LIF stock prices are sustaining above the falling trendline support level and continuously taking support from the trendline. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. The next resistance level is plotted around CAD 33.60, and the stock may test that level in the short term (2-4 weeks). 

Gibson Energy Inc. (TSX: GEI) 

Gibson Energy Inc. is an oil infrastructure company that collects, stores, and processes crude oil and refined products. Reportable segments include marketing, which deals with buying, selling, and optimizing products such as crude oil, natural gas liquid, road asphalt, and oil-based mud product; and infrastructure, which makes up a system of oil terminals, rail loading facilities, pipelines, and an oil processing facility. Gibson Energy Inc. services Canada and the United States, and the majority of revenue comes from the marketing segment. 

The corporation recently announced its financial results for FY 2023, which was a record-breaking year. Its Infrastructure segment's Adjusted EBITDA and combined Distributable Cash Flow set all-time highs for the second consecutive year, which is a significant positive. Furthermore, this remarkable result reinforced management's confidence, prompting them to increase the quarterly dividend by 5%. 

Technical View: The price of GEI has recently broken out of a rising wedge pattern, which is a bullish pattern indicating a potential increase in value in the near future. This pattern suggests that the buying pressure is growing, and investor confidence is increasing, indicating a shift in market sentiment towards optimism. Moreover, the upward trend of the 14-day Relative Strength Index (RSI) also supports this positive outlook by signaling an increasing buying pressure. Additionally, the stock's price is currently above both its 21-day and 50-day Simple Moving Averages (SMAs), which reinforces the positive trend and adds momentum to the potential rally.