SIA Chartsâ 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 sectorâs 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.
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.
