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.
Up until this week, clothing producer Canada Goose (GOOS.TO) had been stuck in the red zone of the SIA S&P/TSX Composite Index Report since February of 2023, and was near rock bottom as recently as November. During its stay in the red zone, the shares lost 23.5%, while the S&P/TSX Composite Index gained 9.2% over the same time frame.
Boosted by a positive response to improved results, Canada Goose shares have jumped 7.3% in the last week and 23.7% over the last month, while the Canadian benchmark index is down 0.4% over the last week and only up 0.8% over the last month. This rally has enabled GOOS.TO to jump 85 spots in the last week and 148 positions over the last month to 75th place, climbing up out of the red zone and into the Yellow Neutral Zone.
Candlestick Chart Breaks Out of a Downtrend. A major breakout is underway in Canada Goose (GOOS.TO) shares. Back in November, a long-term downtrend finally bottomed out and since then, the shares have been building a base for recovery. Last week, GOOS.TO rallied on a volume spike, a sign of new accumulation and broke out of a downtrend. This week, the start of a new recovery trend has been confirmed with the shares breaking out of a bullish Ascending Triangle base and clearing $19.00.
Upside resistance may emerge near the $20.00 or $25.00 round numbers. A measured move from the triangle suggests previous highs near $24.50 may potentially be tested. Initial support appears near $18.00, a previous breakout point.
Point and Figure Chart Breaks Out of a Base. It increasingly appears that a long-term downtrend in Canada Goose (GOOS.TO) shares bottomed out back in November. For the last six months, the shares have been base building in the $15.00 to $19.00 area. Rallying up out of a bullish Bear Trap, the shares have been under renewed accumulation this month. First GOOS.TO completed a bullish Double Top pattern, then with a bullish Spread Double Top breakout, it has broken out of a base and rallied to its highest level since October, completing a base and signaling the start of a new recovery trend.
Initial upside resistance appears in the $21.45 to $22.75 where vertical and horizontal counts, previous highs and lows and a long-term 45-degree downtrend line cluster. Initial support appears near $17.60 based on a 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 6 out of 10, GOOS.TO is exhibiting short-term strength against the asset classes.
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