While stocks within a group often outperform or underperform relative to each other, itās difficult for a stock to fight broader sectors or market trends forever.
Kinross Gold (K.TO) has been one of the top ranked gold producers in the SIA S&P/TSX 60 Index Report for the last year and in fact has been one of the top ranked stocks in general over that time having spent a lot of it near the top of the Green Favored Zone.
Since the beginning of this year, as highlighted in recent editions of the Daily Stock Report, the gold sectorās relative strength has been crumbling. While several stocks in the group tumbled down the rankings Kinross Gold held in the Green Zone for an extended time.
Into February, however, it appears that sector weakness has caught up to Kinross. In the last month, Kinross has dropped 24 positions to 28th place, tumbling out of the green zone into the Yellow Neutral Zone to sit just three places above the red zone.
Candlestick Chart Rallies Out of a Falling Wedge:
A long-term downtrend in Kinross Gold (K.TO) shares bottomed out in the summer of 2022, and since then, the shares have been steadily recovering lost ground, advancing in a Rising Channel of higher highs and higher lows. Toward the end of last year, however, the shares ran into resistance at a previous high near $8.40. Since then, they have been pulling back in what has looked like a common correction, taking out their 10-week average. This week, the shares have broken a shorter-term, steeper uptrend line, suggesting a deeper decline may be getting started.
Next potential support appears near $6.00 where a round number, the October 2023 low and longer-term uptrend support cluster. Initial resistance on a bound appears near $7.00.
Point and Figure Chart Goes Rolls Over:
Since bottoming out in July of 2022, Kinross Gold (K.TO) shares have been under accumulation, advancing in an uptrend of consistently higher lows. Earlier this year, a breakout ran into resistance at a previous column high near $8.22 and since then, the shares have been retreating. Earlier this month, the shares completed a bearish Double Bottom breakdown to signal that a downswing was getting underway.
Next potential support may appear in the $5.70 to $5.95 area where a horizontal count, uptrend line and previous highs and lows cluster. Initial resistance appears near $7.40 based on a 3-box reversal and previous column highs and lows.
With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, K.TO is exhibiting short-term weakness against the asset classes.
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