Bank of Montreal is likely to see its stock getting appreciated in the upcoming trading sessions.

Canada's fourth largest bank has recently reported its fiscal year results, that beat Thomson Reuters estimates: Net income (+5.4%) EPS (+1.5%). Fourth quarter results are also above the consensus. The bank raised its quarterly dividend by 3%. Furthermore, it has announced intention to buyback up to 15 million of its common shares.

Technically, the stock evolves in a bullish trend on the short and long term. Prices have rebounded upon contact with the CAD 76.25 support and the upward trendline. The stock has recently crossed its moving averages, positively oriented on weekly data. Indeed, the 20 day moving average has recently crossed the 50 and 100 day ones, which should support the bullish movement.

Thus, Bank of Montreal security is likley to rally on the upcoming trading sessions. Most active investors should open a long position on the stock to aim the CAD 85.40 resistance in a first place, level that will allow the stock, if crossed, to reach a new highest price around CAD 89 (swing effect), which could be targeted. However, a stop loss should be placed under the CAD 81.25 pivot point, in case of a bearish movement.