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.
Badger Infrastructure (BDGI.TO) climbed up the relative strength rankings in the SIA S&P/TSX Composite Index Report last summer, moving up from the red zone to the green zone. After remaining highly ranked from August through April, Badger has seen its relative strength erode over the last month. Yesterday, BDGI.TO returned to the Red Unfavored Zone after falling 54 positions in the last month to 120th place.
While Badger was in the green zone, it returned 27.9% compared with an 8.4% gain for the S&P/TSX Composite Index. Since leaving the green zone a month ago, BDGI.TO is down 7.1% compared with a 0.7% gain for the S&P/TSX Composite Index.
Candlestick Chart Shows Selling Pressure Increasing. At the end of March, an uptrend in Badger Infrastructure (BDGI.TO) shares topped out when the shares broke out over $50.00 but were unable to hold above that key round number for more than a few days. Since then, the shares have been under very steady distribution, consistently falling by a small amount most days. Over the last two months, the shares have also snapped trend and level support lines and broken down below their 50-day average.
In the last week, selling pressure has intensified with the shares falling on rising volumes. Currently Badger is testing $40.00 round number support. Should that fail, next potential support appears in the $32.00 to $36.00 range where it traded last September. Initial resistance on a bounce may appear at the March low near $42.50.
Point and Figure Chart Turns Downward. Badger Infrastructure (BDGI.TO) shares have turned sharply downward since a big uptrend peaked back in April, falling above $50.00 toward $40.00, a loss of over 20%, without even so much as a 3-box bounce. Along the way, the shares have completed a bearish Double Bottom breakdown, signaling the start of a new downtrend.
Next potential support appears near $35.25 based on a horizontal count, followed by previous highs and lows in the $31.30 to $32.60 area. Initial resistance appears between a recent breakdown point near $43.00, and $43.85 based on a 3-box reversal.
With a completely bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 0 out of 10, BDGI is exhibiting short-term weakness across the asset classes.
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