BMO Breaks Out: A Strong Bullish Signal from Bank of Montreal
Today I want to talk about a standout performer in the Canadian banking space — the Bank of Montreal, or BMO. There’s been a lot of buzz lately, and for good reason. The stock has recently reached a 12-month high, and analysts and technical indicators are showing strong signs that BMO is on a bullish trajectory. If you’re tracking the financial sector, BMO is a name you don’t want to overlook right now.
Let’s start with the technical side. BMO had been stuck in a consolidation range, facing stiff resistance between the $136 to $137 level from late 2022 until almost the end of 2024. But in December 2024, the stock finally broke out of that ceiling — and that was a key turning point. After touching a high of $151.08 in February 2025, it briefly pulled back, just below its 40-week moving average — a common cooling-off period for overbought stocks. What’s significant is what happened next: the stock surged again and surpassed its February high, which now confirms a resumption of its long-term uptrend.
From a behavioral and chart-based analysis perspective, BMO is ticking all the boxes. The 40-week moving average is rising, and the overall trendline is sloping upward — both strong signs of continued bullish momentum. There’s solid support between $140 and $142, and unless BMO dips below that zone and stays there, the overall outlook remains very positive.
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Point & Figure charting methods suggest future targets of $165 and even $180. That’s a significant upside potential from its current levels in the $150s. This kind of pattern — breakout, pullback, and continuation — is a textbook example of technical strength.
For traders and investors, there are also layered strategies in play. Long-term holders are advised to keep an eye on the $140 support zone. Swing traders can look to buy slightly over $114.11, with a short-term target around $115.81 and a stop loss at $113.78. Even for day traders, there’s a lot of opportunity, with resistance break levels creating clear entry signals.
Fundamentally, BMO looks strong too. It has recently increased its dividend to $1.63 per share quarterly, which translates into a solid 4.19% annual yield — quite attractive in today’s market. The bank’s payout ratio sits around 61.2%, suggesting both stability and room for future growth.
Analysts remain moderately optimistic. While the consensus is a “Hold,” there are multiple “Buy” ratings and price targets as high as $166. MarketBeat’s average target price hovers around $145.69, which some might argue is conservative given the recent technical breakout and bullish signals.
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