SIA Chartsā relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company or sectorās growth.
With the price of Gold rallying to new all-time highs again this month, stocks of gold producers have been attracting continued interest. Kinross Gold* (K.TO) is the strongest ranked stock not only in the gold sector, but in all of Canada, holding down top spot in both the SIA S&P/TSX 60 Index Report (a spot it has held since May) and the SIA S&P/TSX Composite Index Report (a place it reached last week). Since returning to the Green Favored Zone at the end of March, Kinross Gold is up 54.0%, while the S&P/TSX Composite Index is up 3.7%. At the Daily Stock Report, we usually look at short to medium-term price action but it also can be helpful to look at really long-term charts to put more recent moves into context. This monthly chart, which goes back more than 25 years, shows that although Kinross Gold (K.TO) has staged a big rally recently, in a longer term context, it has just broken out of a big base clearing $11.00 and its recovery trend appears to be just getting started.
Next potential upside resistance for Kinross appears near the $15.00 round number, then previous highs near $16.00. The $11.00 breakout point reverses polarity to become initial support.
*Shares of Kinross Gold are held in portfolios managed by SIA Wealth Management.
Kinross Gold bottomed out in the summer of 2022 and broke out of a downtrend at the start of 2023. The first phase of the current uptrend was a steady advance through to March of this year. In recent months, accumulation has accelerated dramatically. A large High Pole rally was followed by a small four box correction, then the start of a new upleg with a bullish Double Top combining with a previous breakout to form a Bullish Catapult, followed by a rally to new five-year highs.
Next potential upside resistance may appear near $14.65 based on a horizontal count, followed by $17.50 based on a vertical count. Initial support appears near $11.75 based on a 3-box reversal and a retest of a recent breakout point.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, K.TO is exhibiting short-term strength across the asset classes.
*Shares of Kinross Gold are held in portfolios managed by SIA Wealth Management.
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