SIA Chartsā Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.
Methanex Corp. (MX.TO) returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since March of 2023. The shares spent the last year or more bouncing around between the yellow and red zones and started their current climb upward in the relative strength rankings back in March.
Methanex is currently sitting in 56th place after moving up 9 spots yesterday and 40 spots in the last month. In the last month, the shares have rallied 10.2% compared with a gain of 1.6% for the S&P/TSX Composite Index.
This six-year weekly candlestick chart shows just how significant the breakout by Methanex (MX.TO) over $70.00 is. After underperforming and trending downward through 2019, Methanex bottomed out with the rest of the market in March of 2020. The shares staged a two-year initial recovery rally but that stalled out and MX.TO spent the last two years trending sideways between $40.00 and $70.00.
An initial breakout attempt a year ago failed but the shares continued to attract support at higher lows and this week, MX.TO has broken out over $70.00 once again, this time completing a big bullish Ascending Triangle pattern.
Measured moves from recent trading ranges and the ascending triangle suggest next potential resistance may appear in the $90.00 to $100.00 range around the 2018 peak and a big round number. Initial support appears at the 10-week moving average near $65.40.
In the Daily Stock Report, we usually feature the 2% chart which in the case of Methanex (MX.TO) is pretty good with the stock on a Double Top breakout and a Bullish Catapult. We wanted to highlight the 1% chart to show that really nice example of a Symmetrical Triangle between the two recent X rally columns which indicates the strength of investor support and accumulation underlying the current uptrend.
Currently, Methanex is bumping up against its March 2023 high. A close above $73.20 would confirm the start of a new advance with next potential upside resistance near $75.40 then $79.25 based on horizontal counts, and $85.80 based on a vertical count. Initial support appears near $69.60 based on a common three-box reversal.
With its bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) increasing to a perfect 10 out of 10, MX.TO is exhibiting short-term strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
