Grocery shopping on a bad day

The market has dropped 3% today, but no matter for Loblaw Cos. (TSX:L): it hit a new 52-week high. The solid move to plus-$37 leaves behind resistance and spells a good chance for $40 on the next leg.

Loblaw ready to move

Of the 60 stocks in the S&P/TSX 60 Index only George Westin Ltd (TSX:WN) and subsidiary Loblaw Companies (TSX:L) is currently in a bullish Stock Trends category. Loblaw's stock has outperformed the broad market by 39% over the past three months as it has battled with price resistance at the current level since early December. The Bullish Crossover (the secondary trend line has penetrated above the primary trend line) should be a good opportunity to buy L given the strength of the consumer staples sector and the clear signal a move above $36 gives. The stock has been trading in a range for a year, but will attract capital flows as conservative investors move back into stocks cautiously.